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

​More than 1 million ETH has burned on the cryptocurrency network

25.11.2021 - 10:00


2 min

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 Since then, the protocol has withdrawn more than 1 million ETH from circulation (about $ 4,2 billion according to the service).

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.

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