Almost six weeks after the highly hyped Ethereum London upgrade was implemented, a colossal amount of ETH was burned on the network.
Burned 1 billion ethers
Data from Watchtheburn confirmed this with numbers, as it indicated that over 297,000 ETH worth more than $ 1 billion have been burned on the network since the London Hard Fork was activated on August 5th.
The London Hard Fork improved the transaction fee of the second largest crypto asset by market capitalization as it introduced a new burning mechanism to simplify the process. This new burning mechanism requires users to pay a basic fee to initiate a transaction. The basic fee would be burned and miners would receive a portion of it as a tip.
This new burning mechanism, introduced by the London Hard Fork, has proven its worth as a deflationary tool, lowering the network’s rate of inflation.
Initially, Ethereum miners would receive around 13,000 ETH per day; However, the new mechanism was able to combat this by reducing the ETH produced daily and increasing the ETH burned. Currently, the ETH burned has exceeded the amount produced daily.
One of the reasons attributable to the increased ETH consumption is the existing high transaction fees on the network, due to the growing demand for the network coming from the emerging niche NFT which is now trending. The second largest blockchain in the network processes no fewer than 1.2 million transactions every day.
While ETH burned less this week, the amount that would be burned in two months, or the next six months, and even a year, would be unimaginable. If the burn continued at this rate into the next six months, the total ETH burned would reach 1,783,000 and 3,564,000 in the next year.
However, as second-layer solutions like Arbitrum and Optimism are used more, it might be able to free up some space in the main blockchain, which could help reduce activity on the ETH blockchain and reduce activity on the network.
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