111 days ago, the Ethereum network implemented the London hard fork upgrade and added a mechanism (EIP-1559) to change the rate of Ethereum to a new scheme to deflate the encrypted asset ether. Since then, using today’s exchange rate, 1 million Ether or the equivalent of about 3.8 billion U.S. dollars worth of Ethereum have been burned.

More than 1 million Ethereum or 3.8 billion U.S. dollars have been burned so far

The second largest crypto asset by market value, Ethereum (Ethereum) Today’s overall valuation is slightly higher than 500 billion US dollars. The market value of Ethereum accounts for 18.8% of the $2.7 trillion crypto economy. Three months ago, on August 5, 2021, the Ethereum blockchain was upgraded and various functions were added to the consensus rules.The most transformative include EIP-1559 with EIP-3554, Especially EIP-1559 created a new rate plan that allows the network to burn a portion of Ether.

The EIP-1559 summary hosted on Github states:

Each gas in the protocol has a basic cost, which can move each block up or down according to a formula that is the gas used in the parent block and the gas target of the parent block (block gas limit divided by elastic multiplier )The function. This algorithm causes the basic cost per gas to increase when the block is above the gas target, and decrease when the block is below the gas target. The basic cost per natural gas burned.

Since the introduction of the new feature, Dune Analytics’ metrics indicate that at today’s exchange rate, 1,001,212 ether or USD 3.8 billion worth of ether has been destroyed.

At the time of writing, the API of etherscan.io shows the loop Ethereum The supply indicates that there are 118,472,428 Ether today. Today’s largest Ethereum burner is still the non-fungible token (NFT) market Opensea, which has burned 110,081 Ether or US$398 million so far.

The burning from Opensea usage occurred in 7,941,975 Ethereum transfers. Regular Ethereum transfers are limited to 94,800 Ethereum Burned down since the upgrade in August. Decentralized exchange (dex) platform Uniswap V2 (version 2) is the third largest Ethereum burner after the upgrade. Due to the use of Uniswap V2, at today’s exchange rate, 92,239 ETH or 373 million USD worth of ETH has been burned.

Stablecoin Tether (USDT) And the U.S. dollar coin (USDC) also contributed to a large amount of Ethereum burning. Although the tether (USDT) Is the fourth largest burner after Uniswap V2, and USDC is the seventh largest Ethereum burner today. Tether attributed 53,988 ETH burns or USD 210 million in 11,499,787 transfers. Today, USDC contributed to burning 20,042 Ether or 77 million U.S. dollars. Other applications such as Metamask, 1inch, Sushiswap and Axie Infinity also caused a lot of ether to burn.

What do you think of the 1 million Ether burned since August 5th? Please tell us your thoughts on this topic in the comments section below.

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