Ethereum’s average burn rate per minute has almost doubled over the past month. After the activation of the London update, which took place on August 5, the average altcoin burn rate per minute was at the level of 3 ETH, writes RBC.
According to the ultrasound.money service, on September 10, this figure is 5.12 ETH (an increase of 71%). Until the update, London Ethereum was not burned.
By September 10, 264,700 digital coins ($ 897.5 million) had been destroyed on the Ethereum network. Most of all Ethereum has been destroyed since August 5 as a result of: transactions on the OpenSea NFT marketplace (38,500 ETH); internal transfers of altcoin (22,600 ETH); transactions on the Uniswap decentralized crypto exchange (14,500 ETH).
Burning is the destruction of tokens to reduce their number in circulation. This method is used to combat inflation and increase the value of cryptocurrencies. All coin burning operations are recorded on the blockchain as a transaction.
On August 5, the London hard fork took place on the Ethereum network, which was another step in the transition of altcoin to protocol 2.0. Ethereum 2.0 will allow the original blockchain to scale and make it more user-friendly. CryptoQuant CEO Ki Yong Joo said the London update will increase the scalability, security and decentralization of the Ethereum blockchain. In the long term, altcoin will be able to outperform Bitcoin in market capitalization, Ju predicted.
In early September, Ethereum surpassed $ 4,000 for the first time since mid-May. On September 4, for the first time in the history of the existence of Ethereum, the emission of the altcoin became negative. More digital coins were burned that day than new ones were issued.