Since the EIP-1559 upgrade, also known as the London Hardfork went live in August last year, the Ethereum network and its underlying token have been operating as a deflationary protocol.
The implementation of the EIP 1559 upgrade stirred a number of changes in the Ethereum network, one of which is the burning of the transaction fees generated while miners are rewarded based on prioritized tipping paid by transaction initiators.
Since the upgrade went live, the Ether burn rate has hit a significant milestone, with over 2 million Ethereum coins burned thus far. In Accordance with data from Etherchain, exactly 2002146.0 ETH has been burnt, and this is worth approximately $5.87 billion based on the current price of ETH at $2,904.69, according to data from CoinMarketCap.
Per the Etherchain data, the Ethereum blockchain currently has a 50.9% block utilization time and a 2.71 ETH/Min burn rate. As reported by Blockchain.News, the protocol crossed the 1M burnt benchmark back in November of last year.
The London Hardfork was one of the many protocol upgrades that were generally targeted at reducing the pains of the Ethereum network users as congestion was climbing at an alarming rate with the accompanying inconvenience in the form of gas fees owing to bidding wars. With the hardfork going live, the network proposed a base network fee, cutting out the bidding wars.
While the EIP 1559 has contributed in no small measure to the growth and health of the network in terms of easing the usage costs, it has largely given more investors to consider a very bright future for Ethereum in the long run per the deflationary tendencies of the token. Despite the impressive strides of the London Hardfork and other upgrades the Ethereum network has recorded, the ultimate solution to the current scaling and high fees challenges of the protocol is Ethereum 2.0.
Until Ethereum 2.0, which has continued to gain steam per the total tokens staked, comes to life, the aftermaths of the EIP-1559 upgrade will continually be felt.
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