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$144 million of Ethereum has been burned following the new EIP-1559 network upgrade

Ethereum

TL;DR Breakdown

Ethereum has seen a rise in value since the new network upgrade was launched.
• Ether is trading above $3151 today.

At the moment, around $144 million of Ethereum has been burned since the new network upgrade was launched. On today, Sunday, about 45,700 Ether has been burned, as indicated by the Watch The Burn website.

This token burn was completed at an average speed of 3.15 Ether for every minute that passed. The tokens burned were trading over $ 3163, although Ether has lost over 10 cents in value by now.

The Ethereum upgrade is called “EIP-1559” and went live on the 5th of August, also affecting the rates for gas fees. This update attracted investors because it caused a reduction in fees, making transactions more fluid. The investors will only pay a base fee for miners to complete transactions. Previously, users had to enter an auction service in which crypto miners do not obtain the fee. Therefore, the system was congested, and that is where the free burning has arisen.

How does token burning work?

ethereum

The free burning system restricts the amount of Ethereum circulating. Until last weekend, about 89543 tokens had been distributed, while the burning was 45799 ether. This shows a total decrease of 34 percent, according to figures shared by Wath The Burn.

Token enthusiasts have shown their support for the adjustments, as Ethereum’s value rises above $2700. After the new upgrade went live, the token rose above $3160. According to statistics, the Ether cryptocurrency has increased over 65 percent in value in a month.

Ether network upgrade brings gains for investors

Oanda analyst Edward Moya thinks that Ether upgrade will bring many long-term gains for the token. Moya includes that the token’s minted scheme has been limited, which helps it to become scarce quickly. In this way, the token will gain monetary value for each new investor who buys it on the exchange platforms.

Although the outlook shared by Ethereum sounds promising, the token maintains its volatility. By June, the crypto will be trading over $4100, but it lost over 50 percent of its capital from one moment to another. At the moment, Ether maintains its price at $3151 with losing 2.38 percent in 24 hours, according to CoinMarketCap.

On several occasions, regulatory agencies such as the SEC in the United States have spoken about the cryptocurrencies volatility. Opinions on the digital market are variable, but government organizations say that the investor should be ready to lose their money.

Carisbel Guaramato

Carisbel Guaramato

An avid content creator for over 4 years, Carisbel spends her time on blogs and technology news. She honed her skills as a social communicator and now finds crypto and blockchain news events worldwide for transmission through Cryptopolitan's neutral and incisive way.

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