Over $1 billion worth of Ether has been burned since the implementation of Ethereum’s ‘London’ hard fork upgrade, according to data provided by watchtheburn.
The ‘London’ upgrade constituted Ethereum Improvement Proposal (EIP) 1559, an improvement plan that changed the fee model of Ethereum. As per its guidelines, a part of the network fee would be burned with every transaction, in turn limiting the supply of tokens.
The new burn mechanism added a deflationary factor to Ether’s value and currently, over 300,950 ETH has been permanently removed from the circulating supply.
With the implementation of EIP-1559, the conventional Ethereum fee will be “base fee (basic fee)” + “tip (priority fee)”. The basic fee will be burned, and the priority fee will be the profit earned by the miner.
According to ultrasonic.money observation data, the economic activity on the Ethereum network came from NFT Marketplace OpenSea, which destroyed a total of 42,539.83 ETH to date. The figures have surpassed Uniswap and Axie Infinity burns.
In addition, on September 4, the amount of ETH burns in 24 hours exceeded the amount issued for the first time.