The Ethereum network has already burned 2.57 million ether tokens since the adoption of EIP-1559 in August 2021, marking a significant new milestone.
The most well-known smart contract blockchain platform, Ethereum, has been burning its network native coin at an amazing rate since the EIP-1559 upgrade, according to latest on-chain data.
The London hard fork, also known as the EIP-1559 update, which provided the ability to burn Ethereum fees and abolished ETH base costs from Ethereum transactions, was made available on August 5th, 2021. The base fee is the minimal amount needed to include a transaction in an Ethereum block.
The blockchain has burned 2.57 million ETH, or around $3.8 billion, at current prices over the previous year since the London hard fork upgrade, according to information given by Ultrasound.Money.
A negative issuance has occurred in the recent months as a result of more ETH coins being burned than being created. Negative issuance indicates that fewer coins are currently in circulation on the network, which could be seen as a deflationary effect that most Ethereum holders have been expecting.
Making Ethereum a deflationary asset was the major objective of the fee-burning mechanism suggested in the EIP-1559 upgrade last summer. It would only be feasible if the amount of coins burned within a specific time period was less than the asset’s net issuance.
Ethereum’s London Hard fork and improvements are being implemented as part of its transition to a proof-of-stake network, which will do away with Ethereum mining and make the currency more long-term sustainable. The update, also known as “the merge” or “ETH 2.0,” seeks to significantly lower the gas costs associated with the blockchain.
Following the adoption of the network update in August 2021, Ethereum had a resurgence in its utilization in the developing DeFi and NFT spaces and its status as the “first-mover” among smart contract platforms.