The amount of Ethereum burnt by EIP-1559, a recently implemented update that burns off transaction fees that used to go to miners, has exceeded 200,000 ETH (about $675 million in burn-time price).
A total of 204,281.8 ETH was burned, worth $682 million, according to ethburned.info.
At current rates, about $1.2 million in ETH, or 300 ETH, is burned every hour. So far 4,877 ETH have been burned. On Saturday (4), the network burned 10,675 ETH and on Friday (3) it burned 13,839 ETH.
EIP-1559 was introduced in early August as a way to speed up the upgrade to Ethereum 2.0, the next-generation version of Ethereum that transitions from the proof-of-work blockchain, a computationally intensive way of verifying transactions, to proof-of-bet , an ecological algorithm that uses much less energy.
To do this, the EIP-1559 destroys the circulating ETH rather than paying it to miners who validate transactions through proof of work calculations. The switch to EIP-1559 was not popular with miners who spent money on graphics cards that are adept at mining Ethereum.
Ethereum 2.0 Path
Ethereum will “merge” with the proof-of-bet version of its blockchain later this year or early 2022. However, it will be a few years before Ethereum 2.0 has the same smart contracts functionality as Ethereum 1.0.
A predicted side effect of EIP-1559 was that rates would be reduced, or at least become more predictable. However, Ethereum fees are still very high — and are getting higher due to the continued resurgence of NFT projects.
At the time of this writing, a single exchange on Uniswap cost $76.31 and an ERC-20 transfer cost $24.8. The biggest consumer of gas is the NFT OpenSea market, which used 11.65% of all gas on the Ethereum network in the last 3 hours and 15% the day before.