Ethereum: New Protocol Has Already ‘Burned’ $4.2 Billion In Coins

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Ethereum: Implemented in August of this year, the “London” update arrived for Ethereum (ETH) with great promises. Just three months later, the benefits of the change are clearer than ever: in addition to making its network almost deflationary, it was also responsible for burning US$4.2 billion in currencies, a record reached this Wednesday (24th). ) — equivalent to about 1 million ethers, as the units of the main alternative cryptocurrency are called.

More specifically, the “London” update refers to the implementation of the “EIP-1559” protocol, which introduced a reform in the charging method of the Ethereum network and allowed, through a new mechanism, the partial “burning” of the amounts charged — known as “Gas”, in the term popularized in English. In short, each transaction performed removes ethers from circulation, making them more scarce and, consequently, more valuable.

In this context, data from the Ultra Sound Money website show that around 7.6 ETHs are burned per minute, totaling a daily average of 11,042 units eliminated in the current metrics. If the trend continues, the Ethereum network will destroy 4 million coins annually and approach a “deflationary rate” of emission, as it still produces around 5.4 million ethers every year.

The data also reveals that the biggest ethers “burning” agents are still NFT trading platforms and “play-to-win” format games like OpenSea and Axie Infinity, respectively. Next are decentralized brokers such as Uniswap, 1inch and Sushiswap, which move millions of dollars in coins across the Ethereum network daily.

Currently, ETH is traded at around US$ 4.2 thousand, around R$ 23.8 thousand in direct conversion. Less than two weeks ago, cryptocurrency hit a new all-time high at $4,800, following its strong upward trend.