The Ethereum network hit a new milestone with 3 million ETH burned after 1.5 years of implementing the EIP-1559 coin burning mechanism.
The early hours of March 15 saw 3 million ETH burned by EIP-1559 on the Ethereum network. The entire value of Ether is greater than $9.1 billion at the current market price of $1,710 per unit.
Ethereum unveiled EIP-1559, a unique method, in August 2021. Instead than allowing users to freely select fees, as was the case in the past, which caused ETH gas fees to constantly "grow up," this method would set a common fee known as the base fee that is applicable to all transactions on Ethereum. the busiest hours. As a result, EIP-1559 aids in fee stabilization and facilitates user prediction of gas charge variations. Moreover, users have the choice to pay a priority fee for transaction validators to support transactions. improved performance.
The biggest change in EIP-1559 is that the platform will be subject to deflationary pressure by burning the entire base fee. Ethereum has burned 1 million ETH since EIP-1559 on November 24, 2021, 2 million ETH on March 21, 2022, and 3 million ETH on March 15, 2023. It is clear that there is a growing gap between burns of 1 million ETH, which is correlated with a decline in activity on the Ethereum network as the cryptocurrency market crashes in 2022.
According to EIP-1559, there are currently 64,300 fewer ETH tokens in circulation on Ethereum than there were when The Merge update went live in September 2022. Ether's yearly devaluation is 0.108 percent per year when factoring in the fall in Proof-of-Stake and EIP-1559 transaction verification incentives.
With around 2 million ETH being distributed to the market every year at an inflation rate of up to 3,423% if Proof-of-Work is still in use, Ethereum will have. From the beginning of EIP-1559, transfers of ETH, stablecoins USDT and USDC, trading on DEX Uniswap and MetaMask wallet, and NFT transactions through OpenSea have consumed the most fees.
Ethereum apps have incurred the greatest fees since August 2021. 10:30 in the morning. A screenshot of Ultrasound.money was captured on March 15, 2023. Following EIP-1559 on Ethereum's success and influence, other blockchain projects, like EIP-1559 on Polygon and BEP-95 on BNB Chain, started making comparable attempts.