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Ethereum Has Destroyed $8.10 Billion in Ether, ETH Scarcity to Increase After The Merge – Technology Bitcoin News

According to current metrics, the Ethereum blockchain has burned 2.35 million Ethereum since the implementation of the Ethereum Improvement Proposal (EIP) 1559. The value of $ 8.10 billion was burned in nine months, and in the last seven days 18,110 Ethereum was destroyed, worth $ 34.9 million.

2.35 million Ethereum burned — Ethereum developers say a merger could occur in August

About 288 days ago, the Ethereum developers implemented it EIP 1559With a rule set upgrade that fundamentally modifies the algorithm associated with the protocol’s base price per gas, the network now consumes the base price per gas.

Since the London upgrade on August 5, 2021, 2.35 million ethers, worth $ 8.1 billion in US dollars, have been permanently destroyed after the EIP 1559 was code-based and operational.

The day after EIP 1559 was implemented, Ethereum co-founder Vitalik Buterin explanation The change was “arguably the most important part [the] London [upgrade].. “

Over the last 24 hours, $ 4.63 million worth of 2,396 ethers have been burned. On May 1, 2022, the network recorded the highest daily burn rate to date with $ 138.78 million worth of 71,718 ethers. The second highest daily record for burning rates was January 10, 2022, as about $ 37.5 million worth of 19,424 Ethereum was destroyed that day.

Opensea is the largest Ethereum burner today as the market burned 229,925 Ethereum with 14,639,327 transactions.The gas used for ether transfer burned a total of 207,072 ETHAnd Uniswap V2 burned 131,457 ether.

The London upgrade EIP1559 was a major protocol change, but the next major change is when the merge is applied. At that point, Ethereum will move from the current Proof of Work (PoW) consensus algorithm to a complete Proof of Stake (PoS) network.

Ethereum proponents are already preparing for the merge, as they believe the changes will be systematized at some point this summer. Most recently, on May 17, Consensys, a software company focused on Ethereum, said:Bonsai attemptIs intended to be a few steps ahead of the formal merge migration.

In addition, at a recent permissionless conference, Ethereum developer Preston van Rune Said The general public may see the merge implemented by August. Ethereum developer Tim Beiko Recently explained The merge may be up and running by the third quarter of 2022. Baiko further explained that miners are “strongly proposing” not to invest in more mining rigs in the future.

Despite future changes, Ethereum’s PoW hash rate was the highest point of the network’s lifetime on May 13, with a block height of 14,770,231. Burning Ethereum is only part of the protocol, and many cryptocurrency proponents believe that Ethereum will be “super-healthy” money with a deflationary mechanism.

The merge simulation shows that there will be a shortage of Ethereum after the migration. Currently, the annual issuance rate of Ethereum is 5.4 million Ethereum, and the issuance rate after the merger will be about 500,000 Ethereum annually. The current supply growth is 3.7% per year, but after the merger it will be about 0.4% per year.

Among all these changes, the burning rate of Ethereum will be the same, estimated to be about 900,000 Ethereum per year. However, significant spikes such as the 71,718 ether that burned on May 1 can significantly change estimates.

Tags for this story

2.25 Burned Ethereum, Burned Ethereum, Deflation mechanism, EIP-1559, ETH, Ether combustion, Ethereum, London upgrade, PoS, POW, Preston Van Runes, Proof of work, Proof of stake, Rule set, Rule set changes, Rarity, technology, merge, Tim Baiko, transition, Ultra sound money, Vitalik Buterin

What do you think of the 2.35 million ethers burned after August 5, 2021? What do you think about the approaching merge? Please let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is a news leader in News and a financial technology journalist living in Florida. Redman has been an active member of the crypto community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 5,000 articles on News about the destructive protocols that are emerging today.

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