After Ethereum ($ETH), the second largest Cryptocurrency by market value, launched the London hard fork on its main website, 3.46 million ETH tokens have been destroyed so far, worth far more than $6
After Ethereum ($ETH), the second largest Cryptocurrency by market value, launched the London hard fork on its main website, 3.46 million ETH tokens have been destroyed so far, worth far more than $6.5 billion.
According to the existing data, about 146000 ETH tokens are destroyed every month in the Ethereum blockchain, further reducing the circulation supply of Cryptocurrency. The London Hard Bifurcation includes the implementation of the Ethereum Improvement Proposal (EIP) 1559, which has changed the way transaction costs operate on the network.
Users no longer use auction systems, but instead pay basic fees for transactions processed by miners and can tip them to process their transactions faster.
Miners do not need to pay basic fees as this may motivate them to artificially block the internet to maintain high levels and earn more income. On the contrary, the basic cost is burned down, effectively removing the ether coin from circulation forever. When demand is high, it will rise; When demand is low, it will decrease.
To understand the scale of this phenomenon, consider that assuming an average price of $350000 per home, the eliminated $6.68 billion ETH can purchase approximately 19085 single family homes, as reported by Benzinga.
The main reason for the decline of Ethereum network is the regular ETH transfer, which resulted in the burning of nearly 300000 ETHs. It is worth noting that transactions involving Non fungible Tokens (NFTs) on Opensea have destroyed over 230000 tokens, while the popular decentralized exchange Uniswap has destroyed 200000 ETHs.
It is worth noting that the circulation supply of Ethereum Network has been declining since it changed from Proof of work to the consolidation of consensus algorithm of proof of equity last September. Without TheMerge, the network would generate an additional 6.5 million ETHs.
At the current rate, the supply of Ethereum has declined by about 0.1% every year, effectively offsetting the issuance of new tokens. If the merger did not occur, the supply of Cryptocurrency would expand at an annual rate of about 3.3%.
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