06 Aug 2021 Josphat Kariuki
Ethereum Already Burned $12 Million Worth Of ETH After The Latest Upgrade
Ethereum's much-anticipated EIP-1559, commonly known as the London hard fork is officially live. As cryptobrowser.io reported, "London" brings a fee-burning mechanism, which would take a portion of the transaction fee and direct it out of circulation.
According to various metrics, approximately 3.2 ETH is being burnt every minute, resulting in $518,000 worth of ETH per hour evaporating from Ethereum’s token supply.
The 3.2 ETH means that each minute as much as $8,800 is leaving Ethereum’s network, deflating the second-largest crypto to date, thus increasing its price in the long run. However, the current ETH emission rate, according to Etherchain, is around 6 ETH/min, which is still not sufficient for ETH to transition into a deflationary asset.
Since the EIP-1559 implementation, which occurred on Block 12,965,000 on Ethereum’s blockchain, around 4455.9 ETH went into the burning address, which is around $12.2 million as of press time. Among the top ETH, burners are the OpenSea NFT marketplace, which shredded 525 ETH, valued at little under one million dollars. The list also includes COVIDPunks with 527 ETH, Uniswap V2 and V3 with 353.64 and 157.97 ETH burnt, respectively, as well as Tether with a little over 200 ETH.
Meanwhile, Uniswap’s creator Hayden Adams calculated how much ETH the networks would burn in the course of a year:
“At this rate, Uniswap alone is burning 350,000 ETH - close to $1b worth - per year. Congrats to everyone who made EIP-1559 happen. Huge win for Ethereum,” Adams tweeted.
Furthermore, the team at “The DeFi Newsletter” showcased more figures, regarding the consequences of the London hard fork. Ben Giove commented that if the London hard fork was released upon genesis, it would have burned as much as 684,000 ETH on a 75% base-fee rate.
“Annualizing these figures, this means that between 800,000 — 2.4 million ETH is projected to be burned in 2021,” Giove added.
An interesting fact Giove noted, however, is the dubious deflationary status of Ethereum actually wasn’t as much as a problem, because Ethereum’s yearly inflation is rather normal – around three percent. But, the price of the second-largest crypto to date increased 5 percent, securing levels over $2,750 per ETH.
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