The market downturn has caused Ethereum’s network activity to plummet. NFT and decentralized finance (DeFi sectors) took a significant hit.
Gas prices were not spared. New data suggests that gas prices are near their multi-year lows, and may be even lower in the future.
EIP-1559 has seen ETH burnt to an all-time low, with Ethereum fees falling below $5 per transaction. Additionally, Ethereum fees have fallen below $5 per transaction, meaning that ETH burned by EIP-1559 has reached an all-time low.
EIP1559 has burned $ETH at an all-time low rate, only 11% of issued minted coins being burned.
This is the inflationary ETH since EIP1559 was launched. pic.twitter.com/Jjzw3nJcN8
(@_Checkmatey_ July 31, 2022
The Ethereum network adopted burn mechanics to transition users to the new proof-of–stake (PoS), network. It did this by burning ETH with the help of EIP-1559. The high issuance rate has prompted Ethereum to change its direction. EIP-1559 will burn Ethereum to reduce the supply. This will result in a price rise as ETH’s circulating supply decreases. He said,
After the merger, “ETH” will be deflationary.
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