Almost $ 170 million in ETH has been burned since Ethereum’s major upgrade

The second largest cryptocurrency by market capitalization, valued at nearly $ 170 million, has been burned since the London hard fork of the Ethereum network went live on August 5th.

According to data from tracking website Watch the Burn, 52,660 ETH have been burned at the time of writing, which is nearly $ 170 million. Over 3 tokens were burned every minute, with the issue still above that level.

The London hard fork included the implementation of the Ethereum Improvement Proposal (EIP) 1559, which changed the way transaction fees work on the network. Instead of an auction system, users now pay a base fee for miners to process their transaction and, alternatively, can tip so that their transactions are processed faster.

Miners are not paid the basic fee as it could give them an incentive to artificially overload the network in order to keep it high and earn more. Instead, the basic fee is burned, which means that ether is withdrawn from circulation forever. It rises when there is higher demand and decreases when there is less demand.

The supply reduction is helping Ethereum’s inflation rate drop and could make the cryptocurrency deflationary if the burn rate gets high enough. The data so far shows that of 97,212 ETH issued, over 52,660 were burned.

Investors have been bullish since the upgrade began, with the price of Ethereum hovering from around $ 2,700 on Aug. 5 to nearly $ 3,200 at press time, according to CryptoCompare data.

In a note handled by Business Insider, Edward Moya, a senior market analyst at Oanda trading platform, said:

A massive upgrade to Ethereum should prove very bullish on the long-term prospects for the cryptocurrency.

As CryptoGlobe reported, former Goldman Sachs executive Raoul Pal has announced that he believes Ethereum is the “greatest trading” setup he has ever seen, as cryptocurrency fundamentals suggest it has a huge advantage has in front of him.

Pal revealed that he believes Ethereum fundamentals make a better setup than what Bitcoin had in March 2020 when its price fell over 50% to $ 4,000 before rebounding. Since then, the price of BTC has soared to a new all-time high near $ 64,000.

The views and opinions of the author or the persons mentioned in this article are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading in crypto assets carries the risk of financial loss.

Selected image via Pixabay

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