The value of burnt Ethereum reaches 1 billion dollars… Is there a timeline to see the impact of this on the price?
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Answer The value of burnt Ethereum reaches 1 billion dollars… Is there a timeline to see the impact of this on the price?
Since the upgrade and split of “London” which carries the “EIP 1559” protocol, which is integrated into the Ethereum blockchain and works to burn fees instead of giving them to miners, the total number of Ethereum coins burned has exceeded 1 billion dollars.
It can be said that the latest upgrade (August 5) converted Ethereum into a deflationary currency, burning a total of 320,380.7 ETH, worth $1,103,734,590.75. at the price That’s about $3450.
As is well known, the burning in the crypto market is a way to permanently extract part of the circulating supply of cryptocurrencies.Read:Find out how much bitcoin is traded on cryptocurrency exchanges
The burning program is often initiated for a number of reasons including to enhance the value of the digital currency for a particular blockchain project, or to reduce the overall supply, a move that is likely to affect the price of the asset positively.
While the cryptocurrency burn rate has continued to drive scarcity in the Ethereum blockchain in a subtle way, many are skeptical about its potential effects on the ETH price.
Ethereum is one of the major cryptocurrencies enjoying a steady growth rate when compared to Bitcoin, and the rise from $2,791.17 to the current price of $3,450 could be attributed to other factors beyond the burn program.
These other factors may come from increased demand and buying of the digital currency Ethereum, as decentralized finance (DeFi) and non-fungible tokens (NFT) continued to see positive momentum in the past weeks.
The Ethereum 2.0 upgrade continues the deflationary procession:
Among the most well-known plans in the Ethereum Foundation roadmap is the eventual transition to Ethereum 2.0.
The Ethereum 2.0 upgrade is based on a Proof of Stake (PoS) mechanism designed to replace the current Proof of Work (PoW) protocol which is so power-intensive that it has come under fire in the past few days.Read:Cardano increases focus on interoperability and complicates new investment in the same vein
Besides boosting the overall positive outlook of the Ethereum network, the emergence of Ethereum 2.0 will be the ultimate complement to all the positive upgrades the blockchain has seen so far, including the “EIP 1559” upgrade.
Depending on the nature of the impact proponents would like to see, the ongoing burn event is part of a wide range of fundamentals driving the steady growth we are seeing in the performance of the cryptocurrency Ethereum.
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