Over 11 million ether burned after the upgrade, but why is the ETH gas increasing?
Over 11 million ether burned after the upgrade, but why is the ETH gas increasing?
- The ETH burning mechanism of EIP-1559 will reduce the Ethereum inflation rate from 3.3 percent to under 2.65 percent.
- The Ethereum ecosystem researcher Trent.eth explains what led to the increase in the ETH gas fee.
On Thursday, August 5, the eagerly awaited London Hardfork upgrade finally went live in the Ethereum blockchain network. The implementation was easy and the Ethereum blockchain has already started to burn the ETH coins.
Thanks to the implementation of the Ethereum Improvement Protocol (EIP) 1559, which introduces the mechanism to burn the basic fee. This will keep the transaction inflation under control for the existing proof-of-work-work consensus mechanism for Ethereum.
Since the Hard Fork London went live on Thursday, online trackers have started to pursue the ETH-Burn rate. In less than 24 hours, more than 4,000 ETH coins worth $ 11 million were burned. Like Pro data in Etherchain is the total number of the burned ETH coins at the time of printing 4081.3. The ETH burning rate per minute for the last 24 hours is 2.84. So the network burns over 4000 ETH coins at a single day.
This may sound a lot, but the Ethereum offer still exceeds the ETH-Burn rate. A total of 2.24 million ETH were spent in the first seven months of 2021. Even with the current offer rate, ETH offer inflation will increase by 3.3 percent per year or 3.8 million. Thus, the ETH burn only reduces the inflation rate of Ethereum.
In the current burn rate, inflation would decrease between 1.25 percent and 2.66 percent. The report by Bankless Note :
As we can see from the current offer and the annualized burn numbers for 2021, there is a high probability that ETH will become deflationary after the transition to the proof-of-stake. Depending on the burn rate, the inflation rate from Ether can drop to up to 1.05 %.
ETH price shoots over $ 2800, gas fee increases
The second largest cryptocurrency in the world, Ethereum (Eth), continued its upward trend today and today rose over the $ 2800 mark. At the time of going to press, Ethereum (ETH) acted by 3.64 percent higher at a price of $ 2768 and a market capitalization of $ 325 billion.
However, there was a surprising event. In the last two days, the Ethereum gas fees have been shot instead of falling. According to the data, the ETH gas prize rose to Bitinfocharts by 70 percent to $ 15. The reasons for this explain the researchers of the Ethereum-Ökosystems Trent.eth mentioned
There were some large NFT burglaries that led to traffic jams. Second, many services (e.g. stock exchanges) deactivate functions in a window around network upgrades. This need to catch up is released as soon as each platform is satisfied with the chain stability. The researcher continues: "Some miners determine a gas limit under 30 mm, which gives us a goal of ~ 13.5 mm gas. In comparison, the gas limit was 15 mm, which led to less available block room, which led to a reduction in throughput. Therefore, a positive result leads to another volatility of the ETH market, which leads to a further increase in gas prices.
Source: Crypto-news-flash.com
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