The Ethereum burning process started after the London update, which was activated on August 5th. Since then, some of the transaction fees have been destroyed, currently at a rate of 5 ETH per minute ($ 18 thousand).
Since August 5, more than 300 thousand Ethereum have been burned for more than $ 1 billion, according to the ultrasound.money service. The average burning rate per minute is currently 5 ETH, worth about $ 18 thousand.
In early August, the London update was released on the altcoin network, which completely changed the mechanism for calculating transaction fees. Some of the commissions that miners previously received as a reward are now burned.
Burning is the destruction of a part 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,
so anyone can verify that the coins have been destroyed.
Ethereum has been destroyed most since 5 August as a result of:
- Deals on the OpenSea NFT marketplace – 42.9 thousand ETH;
- Transfers in the Ethereum network – 25.6 thousand ETH;
- Operations on the Uniswap crypto exchange – 16.7 thousand ETH;
- Transactions with stablecoin USDT – 14.9 thousand ETH.
Since the beginning of August, Ethereum has risen in price by 33%, to current levels of about $ 3.6 thousand.
Earlier, analysts of the British banking corporation Standard Chartered predicted that in the long term, the price of altcoin will be $ 26-35 thousand.
At the same time, in their opinion, Bitcoin will be bargain at $ 175 thousand, while next year its rate may reach $ 100 thousand.
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