Since Ethereum’s London upgrade introduced a new burning mechanism for transaction fees only six weeks ago, more than 300,000 ETH has been burned.
Following the implementation of the long-awaited Ethereum London hard fork on August 5, 2021, new data shows that over a billion dollars in ETH has become unusable due to a burn mechanism.
Over 300,000 ETH has been consumed.
According to Dune Analytics, a total of 303,681.05 Ether, which is currently worth $1.032 billion, that was originally intended to be rewarded to miners as part of fees has been burned in less than two months since the last network upgrade.
Many Ethereum users have expressed concern about impending inflation as a result of the high fees miners receive for processing network transactions, prompting developers to implement a burning mechanism.
With the implementation of the London hard fork, the Ethereum inflation rate is gradually decreasing, as miners are forced to share some of the users’ fees known as base fees, which they would have originally kept for themselves.
Prior to this point, Ethereum miners could earn up to 13,000 ETH per day as a reward for processing transactions on the network.
However, the burning mechanism has reduced that amount to around 6,000 ETH since the launch of Ethereum Improvement Protocol 1559 (EIP-1559).
Miners are able to stay afloat due to high demand.
While many may be surprised that tons of ETH were burned in just over a month, the network has recently seen increased demand.
Ethereum is still the most popular blockchain for non-fungible tokens (NFTs) and decentralized application (dApps) developers, with a slew of new projects being released on a daily basis.
As a result of these activities, several transactions have occurred on the second-largest blockchain. Ycharts data shows that Ethereum daily transactions have remained as high as 1.2 million in the last week or so.
The Ethereum Hashrate has reached a new high.
Despite the large amount of ETHs burned from miners’ fees, one would expect a mass exodus of miners from the network to similar projects.
Miners, on the other hand, have remained resilient and committed to the network as transaction volume and ETH prices continue to rise.
Two days ago, ULTCOIN365 reported that the Ethereum hashrate had reached a new all-time high (ATH) of 715.4 TH/s, indicating increased miner interest in the second-largest cryptocurrency.