over a million ETH have been burned since the implementation of EIP-1559

Ethereum continues to burn its ETH

As a reminder, the “burn” mechanism had been introduced on Ethereum during the redesign of the pprocess related to transaction fees. It makes it possible to get rid of part of the ETH for each transaction, in order to promote a deflationary effect, and therefore to support the price of the cryptocurrency in the long term.

If we look data published on Ultrasound.money, we see that the number of ETH burns recently exceeded one million. This means that the network burns 6.27 ETH per minute on average, which is almost $ 27,000 at the current rate. This reduces the ETH supply to 5.4 million per year on average.

The projects that burn the most tokens

We also learn that it is OpenSea, the largest non-fungible token (NFT) marketplace, which burns the most ETH. In total, she destroyed 110,000 ETH, which puts the project ahead of simple Ether transfers:

Ranking of projects by number of ETH burned – Source: Ultrasound.money

We note that the decentralized exchange platform (DEX) Uniswap takes third and fifth place in the standings, in its version V2 and V3. And the Axie Infinity project is one of the few NFT projects to appear at the top of the rankings, confirming its current appeal.

👉 Read About It – Axie Infinity (AXS) Becomes The First NFT Game To Surpass $ 1 Billion In Sales

A mechanism to support the course?

If the ether burns have been so closely watched, it is that they are supposed to support the long term course. From this point of view, the maneuver seems to have worked. The price of ETH has risen almost continuously since EIP-1559, which took place on August 5th. Ether hit an all-time high at $ 4,879 in early November:

ETH Ethereum price

ETH price progression since EIP-1559 – Source: TradingView, ETH / USDT

Note however that the trend is generalized Bitcoin (BTC) price has also seen surges in recent months, with an all-time high at around the same time.

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Fees that continue to be prohibitive

On the transaction costs side, however, the news is less encouraging. Users hoped that the costs would not necessarily be reduced, but at least more predictable and stop skyrocketing following the EIP-1559.

But it is rather the opposite that took place, with transaction costs who were once again reaching new heights at the beginning of the month. And if that makes the happiness of second-layer solutions (or layer 2), this strangles some users unwilling to pay more than $ 60 in average fees.

Hence some criticism from the community, which as often welcomes positive price movements, while regretting that they are accompanied by exorbitant fees. From this point of view, nothing is really new at Ethereum.

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About the Author : Marine Debelloir


Associate Editor on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to unearth the crispest information to share it with you.
All articles by Marine Debelloir.

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