$30M In ETH Burned In Two Days After Latest EIP-1559 Launch

$30M in ETH burned in two days with the latest EIP-1559 launch and the London hard fork, changing the way miners are rewarded so let’s read more in today’s Ethereum news.

The Ethereum network removed $30 million from circulation since the London hard fork launched on August 5 which saw developers implementing a change to the network that burns transaction fees. $30M in ETH burned since the change and the NFT projects top the leaderboard of Ethereum gas burners with NFT marketplace OpenSea leading the change.

Ethereum’s new transaction fee burning mechanism removed $30 million in ETH from the network’s circulation since it came into effect. EIP-1559 is one of the five upgrades introduced as a part of the Ethereum London Hard Fork and it replaced the auction-style transaction fee mechanism with an algorithmically determined alternative. Unless the users choose to tip the miners, they will no longer receive transaction fees so they will get burned and reduce the total supply of ETH in circulation. As per the data on Ultrasound.money, about 1,332 ETH burned so far from transactions on OpenSea where trading volumes spiked since a CryptoPunks frenzy started a week ago.

The second top ETH burner is Uniswap V2 where the transactions burned 810 ETH. The third is Axie Infinity an ETH-based game where the players purchased NFTs of monsters and battle them and the platform burned 626 ETH. NFT project COVIDPunks is the fourth highest gas-spending project with 528 ETH burned. In fifth place is Tether with a market cap of $62 billion. Tether is built on the Ethereum network and it is responsible for 510 ETH burned.

Ethereum’s London hard fork could have changed the way miners are compensated on the blockchain but more change is about to come. Ethereum will soon transition from proof of work to proof of stake. Next on the agenda is the merge which will connect Etheruem’s mainnet to the Ethereum 2.0 beacon chain when the current iteration of the ETH links up with the next generation of the network. Ethereum’s founder Vitalik Buterin said that the London upgrade is proof that the ETH ecosystem is able to make major changes and that it makes him more confident about the merge. The merge is pivotal for Ethereum staking which powers Ethereum 2.0 and about 5% of all EHT is now staked in ETH 2.0 which is around 6.5 million ETH worth $20 billion.

Source: https://www.dcforecasts.com/ethereum-news/30m-in-eth-burned-in-two-days-after-latest-eip-1559-launch/