Since Ethereum Improvement Proposal 1559, 2.8 Million Ether Have Been Burned

Since Ethereum Improvement Proposal 1559, 2.8 Million Ether Have Been Burned
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The protocol was "burning" eth, which is crypto language meaning destroy, at an enormous rate in the framework of eip 1559, published in August 2021. Eip means ethereum improvement suggestion.

Eip-1559 states that a percentage of each transaction is rejected. It includes one component of each NFT transaction, performance strategy, and even simple token transfer. The whole place is burning.

It's all burning to the ground.

According (1) to Ultrasound Money, the Ethereum protocol has been responsible for the burn of more than 16,364 ETH in the past week, at a pace of around 1.62 ETH being lost per minute.

This burning process results in more destruction than distribution to the miners. Since 1559, supply growth has slowed down to a rate of -1.06% per annum. For that reason, ethereum is more conducive to deflation than bitcoin, which has been widely considered as the first form of solid silver.

The following chart shows the evolution of network token procurement through the various gates and upgrades that have been implemented. The chart below shows how the network token procurement has evolved over the various gates and upgrades that have been implemented.

The dotted area shows that the deflationary trend is expected to continue over the next couple of years. Source: Ultrasound money (1.1)

The only plausible explanation for why this prediction won't come true is if there is a steep drop in the quantity of ETH that is bought and sold. Remember that eth is destroyed every time a transaction takes place over the network.

This combustion rate could be used as a further measure to determine the level of uptake of the system.

What causes the rate of flame of the ether?

Therefore, what areas of application (as described by the silver of ultrasound) drive the adoption of the ethemeter the most? NFT and DEFI activities were the primary sources of gasoline that caused the Ethereum fire in the past week.

These two categories are responsible for the loss of approximately 8000 eth this week. The major corporations in each category — OPENSEA (1,298 eth) and uniswap v3 (876 eth) — were the main contributors to this impairment loss.

This statistic also highlights a little more about stable competition between usdt and usdc, which is useful. We all know that the former has a market cap that is still light years away from the latter.

The product supplied is also responsible for the destruction of more than three times more aether.

In the course of the past week, USDT transactions were consumed in the vicinity of 705 eth, while usdc transfers consumed only 228 eth. so to speak, Utilization continues to dominate the pack with respect to the adoption of ether standards.

The ethereum ecosystem will continue to watch it burn as long as the movement of the network happens at its present fast pace.

Chart Source: thradingview.com (2.1)

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