The Ethereum blockchain Ethers worth more than $1.2 million are burning up every hour.
The amount of Ethereum burned by EIP-1559, a recently implemented upgrade that burns transaction fees that accustomed visit miners, has surpassed 200,000 ETH (More than $675 million at the current price it had been burned).
A total of 205,000 ETH has been burned, worth some $682 million, per ethburned.info.
At current Ethereum token rates, about $1.2 million worth of Ethers, or 300 Eethers gets burned hour by hour. So far, 4,850+ ETH has been burned today. Yesterday, the network burned 10,700 ETH and on Friday it burned almost 14,000 ETH.
EIP-1559 was introduced in early August as how of hastening the upgrade to Ethereum 2.0, the subsequent generation version of Ethereum that transitions the blockchain from proof-of-work, a computationally intensive way of verifying and confirming transactions, to proof-of-stake, its much more environmentally friendly algorithm that uses far less energy to confirm transaction on Ethereum Blockchain.
To do this, EIP-1559 removes Ethers from circulation rather than paying it to the miners that validate transactions through proof-of-work computations. The changes to EIP-1559 was for sure very unpopular to miners who had sptent huge amount og money for graphics cards that are adept at mining Ethereum tokens.
ETH will “merge” with the (POS) Proof Of Stake version of its blockchain later this year or early in 2022. However, it’ll take some years before Ethereum 2.0 will have the identical smart contract functionality as Ethereum 1.0.
One anticipated side effect of EIP-1559 was that fees would cut back, or a minimum of become more predictable. However, fees on Ethereum are still sky high—and are becoming higher thanks to the continuing resurgence of NFT projects.
As of this writing, one swap on Uniswap costs $80, and an ERC-20 transfer costs $25. The largest reson for gas fee increase for sure is NFT marketplace OpenSea, which used 11.65% of all gas on the Ethereum network within the past 3 hours, and 15% within the past day.
Miners little doubt are reckoning on with envy.