Ethereum has now burned $1 billion worth of ETH post-London By BTC Peers
Six weeks after Ethereum’s London upgrade went live, the network has burned $1 billion worth of ETH.
WatchtheBurn data confirmed that the network had burned over 38,000 ETH in excess of $1 billion.
EIP-1559 was the London’s new burning method. Consequently, transactions now require a base fee that will be burned. As a tip, miners will receive part of this burned fee.
The update is a good deflationary tool, and has lowered the network’s inflation rates. This update was able to lower the daily ETH production and increase the burned ETH. The daily amount of ETH produced has exceeded the amount that is being burned.
One of the main reasons for the spike in burned ETH is the network’s currently high transaction fees. There are approximately 1.2 million transactions that Ethereum processes daily. BitInfos reported that the average transaction fee was $27.
Even though the amount of ETH that was burnt this week is smaller than in previous weeks, there will be a significant increase in transactions over the next 2-6 months and even a whole year.
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