Last Thursday, the Ethereum network made a big prediction hard fork which submitted a number of new Ethereum Improvement Proposals (EIPs), including EIP-1559.
EIP-1559 provides a base rate for transaction fees on Ethereum. This rate depends on how busy the network is and is destroyed instantly and automatically after a transaction. More than 32,000 ETH worth just over $100 billion have been destroyed since the update.
Especially the relatively new Decentralized Finance (DeFi) in a Non-fungible token (NFT) Markets make a significant contribution to this. OpenSea, Uniswap and Axie Infinity are currently experiencing large volumes, and therefore the so-called combustion rate.
NFTs are now leading the ETH burning process pic.twitter.com/LvMClG2cpT
Nick Tomaino (@NTmoney) August 8, 2021
The price of ether rose last week from around $2,500 to $3,200, an increase of no less than 28%. However, it is difficult to determine if the rate of burn is to blame, as the price actually started to rise with Bitcoin around July 20.
By the way, the supply of ether is not declining at the moment. However, according to the ‘ETH Burn Bot’, there were several moments when the supply actually dropped, but overall more ETH is still being generated across the board. block rewards Then they are destroyed by the base price.
945.1184 ETH dollar Burned 🔥🔥🔥 last hour.
Version: 528.0000 ETH
Net change: -417.1184 ETH
Annual: -3.12% 📉
2021-08-10 22:00-23:00 UTC
Last block: 13000300
Cumulative: 24,942.1282 ETH
– ETH Burn 🔥 Bot 🦇🔊 (ethburnbot) August 10, 2021
Before ether becomes an actual deflation, we will have to wait for the so-called “merger” or merger of the existing Ethereum network with the Ethereum 2.0 Beacon chain. Founder Vitalik Buterin recently reported that he expects this to happen within six months.
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