More than 1 million ETH has burned on the cryptocurrency network

The London update that changed the mechanism for charging transaction fees was activated 109 days ago

25.11.2021 - 10:00

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What’s new? The London update on the Ethereum network was activated 109 days ago. Since then, the protocol has withdrawn more than 1 million ETH from circulation (about $ 4,2 billion according to the ultrasound.money service).

Ethereum burned 1M ETH in 109 days🔥 https://t.co/CuLBNKjMwG 🔥 pic.twitter.com/BetEbJT7jh — ultra sound money 🦇🔊 (@ultrasoundmoney) November" class="redactor-linkify-object">https://twitter.com/ultrasoundmoney/status/1463494... 24, 2021

What is known about the burning process? It started on August 5 after the release of the London update, which changed the mechanism for charging transaction fees. Some of the commissions that previously went to reward miners are now being burned.

So far, the ETH issuance has fallen by 39%. Inflation in the network has slowed to 1,8% per year. The NFT marketplace OpenSea (110 175 ETH) became the leader in the burning. Transfers on the network reduced the number of coins in circulation by 97 500 ETH, Uniswap V2 by 92 692 ETH.

What events preceded it? In mid-November, the CEO of the Singapore-based venture capital fund Three Arrows Capital, Su Zhu, criticized Ethereum for charging too high fees. Because of them, he said, novice market players cannot use this blockchain.

Yes I have abandoned Ethereum despite supporting it in the past.Yes Ethereum has abandoned its users despite supporting them in the past.The idea of sitting around jerking off watching the burn and concocting purity tests, while zero newcomers can afford the chain, is gross.— Zhu Su 🔺 (@zhusu) November 21, 2021