Over 1 Billlion ETH Has Been Burned Since Ethereum EIP-1559
26 Novembre 2021 - 12:00AM
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The Ethereum network has been burning ETH since the EIP-1559 first
went into effect in early August. Since then, a portion of fees has
been continuously burned, taking a large portion of the digital
asset out of circulation. This hard fork had been implemented to
combat the inflationary nature of Ethereum and it has been
successful as countless blocks have been deflationary since the
hard fork took place. ETH Burned Clocks 1 Billion The amount of ETH
burned has risen along with fees on the network. Increased network
usage had caused transactions costs on Ethereum to skyrocket and
since EIP-1559 was implemented to burn a third of all fees, a
higher volume of ETH has been constantly taken out of circulation.
The number had quickly hit 1 million ETH, then 10 million, and by
100 million, the community had turned its eyes towards the billion
mark. Related Reading | Institutional Buys Will Put Bitcoin At
$500,000 In Five Years, Cathie Wood Ethereum hit this number on
Wednesday when the total number of ETH burned on the network had
crossed 1 billion. It only took a little over three months to hit
this number and as burning ramps up on the network, it may take
even less time to hit the 2 billion mark. At the current ETH price,
the total amount of ETH burned comes out to over $4.2 billion.
Prior to EIP-1559, all this volume would have gone into
circulation, increasing the amount of circulating ETH, contributing
to the inflationary nature of ETH. However, with the burn, Ethereum
is headed towards a truly deflationary future. Impact Of Ethereum
Burn Although Ethereum is not fully deflationary, the impact of the
ETH burn has shone through the network in recent times. Some
interesting stats show that ETH being put into circulation per
mined block has reduced significantly. Since the hard fork, the net
reduction has reached as high as 67.16%. Related Reading | Why
This Crypto Billionaire Abandoned Ethereum Additionally, net
issuance has also dropped in line with net reduction. Net issuance
on the Ethereum network is currently sitting at 490,400 at the time
of this writing. There have been 1,493,739 ETH rewards issued,
translating to a little over $6.3 billion. While tips on the
network have done significantly well, with over 200,000 ETH tipped
so far, totaling $846 million. How Price Has Done In Contrast
Ethereum’s price has done tremendously well since the burn began.
Since August, the digital asset has hit multiple new highs and come
close to testing the $5,000 resistance point. The asset has since
taken a beating down along with the rest of the crypto market but
it has held up above $4,000 despite bears trying to pull the price
down. ETH recovers after dip | Source: ETHUSD on TradingView.com
Indicators have remained bullish even when the market has not fared
so well. Analysts have put the digital asset at $5,000 by year-end,
propelled by the growth of DeFi. As more investors flock to the
blockchain to take advantage of this new industry, Ethereum shows
great promise of hitting this price before 2021 runs out. Featured
image from Genesis Block, chart from TradingView.com
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