More than 1 billion ETH has been burned since Ethereum EIP-1559

Since EIP-1559 first came into effect in early August, the Ethereum network has been burning ETH. Since then, part of the fees have been continuously burned, and a large number of digital assets have been withdrawn from circulation. This hard fork was implemented to counter the inflationary nature of Ethereum, and since the hard fork occurred, countless blocks have been in a state of deflation, so it has succeeded.

ETH burned 1 billion clocks

The number of ETH burned increases with the increase in network fees. The increase in network usage has led to a surge in transaction costs on Ethereum, and since the implementation of EIP-1559 to consume one-third of all fees, a large amount of ETH has been continuously excluded from circulation. This number soon reached 1 million ETH, then 10 million, and then 100 million. The community has set its sights on the 1 billion mark.

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Ethereum reached this number on Wednesday, when The total number of ETH burned on the network has exceeded 1 billionIt only took more than three months to reach this number. As the amount of burning on the Internet increases, it may take a shorter time to reach the 2 billion mark.

Based on the current ETH price, the total amount of burnt ETH is more than 4.2 billion U.S. dollars. Before EIP-1559, all these quantities will enter circulation, increasing the amount of ETH in circulation, leading to the inflationary nature of ETH. However, with the burning, Ethereum is heading towards a truly deflationary future.

The impact of Ethereum burning

Although Ethereum has not yet been fully deflated, the impact of the recent ETH destruction has been reflected in the network. Some interesting statistics show that the ETH put into circulation in each mining block has been significantly reduced. Since the hard fork, the net reduction has been as high as 67.16%.

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In addition, the net issuance also declined with the net decrease. At the time of writing, the net issuance on the Ethereum network is currently 490,400. 1,493,739 ETH rewards have been distributed, which is equivalent to slightly more than $6.3 billion. Although the prompts on the network are done very well, so far it has prompted more than 200,000 ETH, totaling 846 million US dollars.

In contrast, how does the price perform

Since the start of the burning, the price of Ethereum has performed very well. Since August, the digital asset has set multiple new highs and is close to testing the resistance level of $5,000. Since then, the asset has suffered heavy losses along with other cryptocurrency markets, but despite the bears’ attempts to lower the price, it has remained above $4,000.

ETH recovers after dip | Source: ETHUSD on TradingView.com

Even if the market performs poorly, the indicators are still bullish. Driven by the growth of DeFi, analysts have set the digital asset at $5,000 by the end of the year. As more and more investors flock to blockchain to take advantage of this new industry, Ethereum shows great hope of reaching this price before it runs out in 2021.

Featured image from Genesis Block, chart from TradingView.com

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