Since the London upgrade, which brought about the implementation of EIP-1559 about four months ago, 1.15 million ETH has been burned on the Ethereum network.
The new data was shared on Twitter by IntoTheBlock on 9th December 2021. The total sum of ETH that has been destroyed and permanently removed from Ethereum’s circulating supply is worth relatively $4.7 billion at current prices.
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IntoTheBlock tweeted, “Since the implementation of EIP-1559, #Ethereum’s fee market mechanism changed for good The now called “base fee” is being burned, meaning that since the London Hard Fork was implemented, a total of 1.15m $ETH has been burned so far On average 11,500 ETH are being burned daily.”
Since the implementation of EIP-1559, #Ethereum's fee market mechanism changed for good
The now called "base fee" is being burned, meaning that since the London Hard Fork was implemented, a total of 1.15m $ETH has been burned so far
On average 11,500 ETH are being burned daily pic.twitter.com/V7RBWkq7u0
— IntoTheBlock (@intotheblock) December 9, 2021
The London upgrade, which includes Ethereum Improvement Proposal (EIP) 1559 that aims to change the way transaction fee or gas fee is being estimated was launched on 5th August 2021.
Read Also: Analyst Nicholas Merten: Ethereum Upgrades Could Take ETH to Hit $20,000 in this Bull Cycle
Base fee and priority fee are the two kinds of fees that make up the Ethereum transaction fee. The base fee is a set amount that a user must pay in order to include their transaction in a block. But the priority fee, also known as a tip, is optional and can be included to encourage miners to prioritize the transaction.
Depending on the level of demand in the preceding block, the fee market upgrade in EIP 1559 implemented a 12.5% base fee increase or decrease per block.
Going by the account of the on-chain analytics platform IntoTheBlock, the ”base fee” is been burned with an average of 11,500 ETH being burned daily. This results in a cumulative amount of 1.15 million ETH since the implementation of the London hard fork.
Ethereum (ETH) in the Market
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has shared in the effect of the unfavorable trend that currently rules the market.
Ethereum has recently lost the $4,000 support level. At the time of filing this report, ETH is trading at $3,991.40, with a 5.43% price downtrend in the last 24 hours, according to CoinMarketCap.
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