Currently, the core value of the ethereum network has been steadily decelerating for one week in a row, during which the amount of ETH burned has reached $ 100 million. More than 32,000 ETH were burned in seven days. The cost burn rate fluctuates, taking into account network traffic, but the fire remains independent of that. Depending on network traffic, the write speed is expected to reach 4 ETH per minute.
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The speed at which the ETH is burned is currently about 3.38 ETH per minute. Thus the current burn rate is more than $ 10,000 per minute. The record shows that the EIP-1559 update is working as intended, and it is hoped that in the long term it will lead to ETH deflation. But now that’s not happening. Burning the base card is still in the early stages, but it works without failure.
It will take some time for the rate at which the new ETH escapes circulation to be high enough for the ETH supply to become deflationary. But that remains the last here. And that’s why recording is so important to the network.
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The fact that Ethereum does not have a limited resource like bitcoin means that an unlimited number of ETs can enter circulation. This feature, which combines ETH with Fiat, is an unlimited offer. This is one of the main reasons why the transition to eth 2.0 is so important for the network.
Reduce ETH circulation
ETH burning basically takes most of the ETH that miners will get for block mining and “burning” of coins. EIP-1559 introduced a base fee mechanism determined by the wallet in which the transaction was created, and this base fee will be charged. If the owner of the wallet where the transaction was created wants the transaction to be included in the block, they can add a “hint” to the transaction.
