Burning Ethereum proceeds intensely with the activation of EIP-1559 last week. The Ethereum London hard fork and the popular EIP-1559 fee burn activation have been a week since then. According to statistics from Ultrasound.money, over 32,000 Ether, been already burnt to the tune of a stormy $100 million.
The activation EIP-1559 has implemented a “base fee” paradigm with the ETH burning procedure. Thus, the transaction fee previously paid by miners is now included in the burning process by issuing burn blocks.
Once the quantity of burned coins surpasses the issue, a deflationary cycle, entered by the Ethereum network. With the activation of the EIP-1559, the Ethereum blockchain network has moreover 800 “deflationary blocks.”
Interestingly, statistics indicate that the adoption of EIP-1559 has not much-impacted mining revenues. Coin Metrics data suggest that decreased transaction revenues have no meaningful effect on overall miner revenues. In reality, after the activation of EIP-1559, Ethereum miner income rose 7.1%, reaching two months.
Ethereum Surpasses Bitcoin
There may be a lot of causes for this. The bullish ETH price outbreak in the past two weeks may cause a rise in revenue.
Ethereum is still receiving significant support from some of the leading entrepreneurs. Shark Tank investor Kevin O’Leary, who just signed into an FTX exchange multi-year agreement, praised Ethereum. He said: “If Bitcoin is sound money because of the 21 million coin supply ceiling, Ethereum enjoys the same benefit now. It’s ultra sound money, because there’s no supply floor […]. Ethereum will be thought of like a traditional business and can be analyzed like one, sort of like using a cash flow model”.
This year ETH has already surpassed its Bitcoin arch-rival. While Bitcoin gains for 2021 have already been 50 percent, this year’s ETH price has risen by 300 percent. This implies that ETH investors have 6x higher earnings than Bitcoin investors.
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