Burned Ethereum Or Burn Almost Penetrates 2 Million ETH

JAKARTA – The burning of Ethereum has almost crossed 2 million ETH since Ethereum launched its London hard fork last year. It is intended to implement the Ethereum Improvement Proposal (EIP) 1559. Per minute, 3.57 Ethereum (equivalent to 9,809.16 US dollars) is burned.

According to a Bitcoin.com News report, EIP-1559 essentially converts the tethered algorithm to a basic cost per gas in the protocol and burns it. Ethereum supporters love the idea because it makes ethereum (ETH) deflate over time. When the London hard fork was implemented, Ethereum co-founder Vitalik Buterin told Bloomberg that EIP-1559 was the most important part of the London hard fork.

"Now it's become easier to send transactions that will be included in the next block and that is very important for the user experience," said Buterin.

A few weeks after the upgrade, EIP-1559 doesn't appear to have affected the high gas fees users face when trying to send on-chain (layer one) transactions. In fact, in the following month after the London upgrade, the average ETH transaction fee skyrocketed to US$59 per transaction. The average fee for pushing an ethereum (ETH) transfer today is much lower, at 0.006 ETH (USD 16.61) per transaction or 31.3 gwei.

Meanwhile, as the network has destroyed 6.9 billion US dollars in Ether via EIP-1559, the biggest on-chain gas burner is the leading NFT marketplace Opensea. As of writing, the said NFT market has burned around 229,916 Ether which is equivalent to 790,499,348 US dollars of 14,635,232 ETH.

The reason is that Ethereum transaction fees are very high. With the EIP-1559 burning a lot of ETH, the transaction fees are lower than last year. For information, the largest Ethereum burning platforms besides OpenSea are Uniswap v2, Swaprouter, Uniswap v3, Metamask, and Tether (USDT).

As of writing, the price of Ethereum is trading at 2,779 US dollars (approximately IDR 39,812,022) per coin. Ethereum price has increased 0.7 percent in the last 24 hours. Meanwhile, in one month, ETH price performance skyrocketed to 14.8 percent, according to data from Coingecko.