The Ethereum network now burned over 1 million ETH since the London upgrade that ushered in the fee-burning mechanism, according to figures from WatchTheBurn. At the current price of ether, the total value of the total ETH destroyed so far now stands at over $4.3 billion.
Ethereum has reached another milestone that changes the shape of the coin today
One million ETH, or $4.3 billion, was taken out of circulation and destroyed. However, it might not be worth as much had it not been destroyed.
Source: Etherchain
In early August, Ethereum developers updated the blockchain with EIP-1559, an Ethereum Improvement Proposal that instituted a base fee, not for miners who validate network transactions but for the network to take out of circulation. The change was designed to slow the token’s growth rate and boost its price while also alleviating some of the worst elements of network congestion by increasing block sizes to include more transactions. Plus, it helps for periods of high demand.
The current Ethereum emission remains at a bit more than two Ethereum coins, which means that assets have not yet reached the long-awaited deflation, and the network is still issuing more coins than burns.
Before the update, Ethereum’s fee structure was working in favor of cryptocurrency miners who were receiving hefty fees during times of high network congestion. At some point, users had to pay up to $80 to make a single transaction.
With the implementation of the new fee-burning mechanism, fees that previously belonged to miners are now being burned and moved out of the supply cycle, which sometimes leads to the appearance of a “deflationary block.” Each release block releases less Ethereum than the amount of Ethereum that was burned before.
Overall, the market has reacted positively to implementing the burn mechanism resulting in 74% growth from October 1st to November 9th. After hitting the most recent ATH, Ethereum has dropped 11% due to the global cryptocurrency market correction.
During the last week, the price of Ethereum has ranged from around $4,100 to $4,200, in line with other significant cryptocurrencies moving with lower volatility compared to the previous week.
Read more:
- The Regulatory Status Of Ether As To Whether It Is A Security Or Not Is Yet To Be Confirmed
- CEO Three Arrows Capital Zhu Su Has Abandoned Ethereum Despite Supporting It In The Past