New data has shown that more than a billion dollars of Ethereum worth have been rendered unusable by a burn mechanism following the implementation of the eagerly awaited Ethereum’s London hardfork on August 5, 2021.
More than 300k ETH burned
Dune Analytics reports that a total amount of 303,681.05 Ether has been lost. This Ether was originally intended to be rewarded to miners in the form of fees. It is now worth $1.032 billion.
Many Ethereum users complain about inflation due to the high fees that miners receive for processing transactions on the network. Developers were forced to create a burning mechanism.
The London hard fork has slowed down the Ethereum inflation rate. Miners now have to pay base fees (or some of the user fees) that they used to keep.
Before this time, Ethereum miners were able to mint as much as 13,000 Ethereum per day. These rewards were given when they processed transactions on Ethereum.
The burning mechanism has decreased that number to approximately 6,000 ETH since the launch Ethereum Improvement Protocol 1559 (EIP-1559).
High Demand Keeps Miners Afloat
It may surprise many that tons of ETH were burnt in just over a week, but the network has been experiencing an increase in demand.
Ethereum is still the preferred blockchain for developers of non-fungible tokens and decentralized applications (dApps), with many projects being revealed on a daily basis.
These transactions have led to many transactions being conducted on the second largest blockchain. Interestingly, data from Ycharts shows that Ethereum daily transactions have remained at around 1.2 million over the past week.
Ethereum Hashrate Launches a New ATH
Despite the fact that miners’ fees have cost a lot of ETHs, it would seem that miners would leave the network in droves to find new projects.
Despite the continued rise in transaction volume and ETH price, miners have remained resilient.
CryptoPotato reported two days ago that Ethereum hashrate had reached a new all time high (ATH) at 715.4 TH/s. This indicates stronger miners’ commitment to the second largest cryptocurrency.
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