Ethereum: Update London Has Already Burned $300 Million in Coins

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After much waiting, the “London” update finally made it to the Ethereum network earlier this month, bringing with it the token-burning engine. Since then, the resource has been responsible for the “disposal” of 101 ETHs, equivalent to around US$300 million — or R$1.5 billion in direct conversion.

Burnt Ether (ETH) units are part of network transaction fees, which were used as an incentive for miners who contribute to their processing, but are now held in inaccessible accounts to reduce currency availability. With the measure, the inflation of the Ethereum network, estimated at 5% per year, dropped 25% due to the decrease in the total supply of its currency.

Another positive point presented by the “London” update also deals with prices on the Ethereum network. The novelty makes it easier to estimate the cost of transactions, known by users as “Gas” in the English term. Although timid, the change increases the reliability of use of the network, while making it more transparent to novice users.

However, the update still does not address the high price of transaction fees, which can escalate with spikes in market interest — such as the infamous case of “non-fungible tokens,” or NFTs. Fortunately, this problem should be solved in the next big update of Ethereum, which will also seek to be more sustainable in its energy expenditure.

Despite the setbacks, activity on the Ethereum network remains on the rise and records around 1.2 million transactions daily, as explained by data from The Block. In terms of values, the volume represents US$ 8.7 billion moved per day and more than US$ 200 billion per month.

Ether (ETH), the main currency of the Ethereum network, currently trades at $3,260 and has the second-largest market capitalization among cryptocurrencies, estimated at $382.9 billion — second only to Bitcoin, at $918, 9 billion.

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