TL; DR Breakdown
- Ethereum burns $4 billion in transaction fees.
- The network underwent an update in August.
- Su Zhu furious with the number of ETH burnt.
One thing token developers do more than others is help traders realize as much profit as possible in the crypto market. With this, traders are sure to flock to the token, increasing the price in the same vein. According to recent reports, the Ethereum EIP-1559 update that went live was a turning point in running the network. A new report has announced that Ethereum has successfully burned 1 million tokens since the update went live in August.
Ethereum’s EIP-1559 update in August
The report claims that the total worth of the destroyed token in the present-day market will be about $4.3 billion. However, if the tokens were in circulation, there are chances it would not be worth that specific price. The Ethereum Improvement Proposal, an update to the blockchain, created a base fee that the network will take out of circulation upon validation of a transaction.
The update was created to tackle the famous nemesis of the Ethereum blockchain, congestion, and slow transaction speed. With the update, the growth rate of the token was slowed while giving it much room to witness a price increase. The update also allowed validates to add more transactions to bigger block sizes, eliminating congestion on the network. Although the impact has not been felt, it has attained a degree of success after it went live.
Su Zhu furious angry with burnt ETH
After the update went live, miners have earned about 1.5 million in rewards while the network has burned about 1 million tokens. A data collated by Watch the Burn, a crypto data platform, noted that the net issued token on the blockchain is just a little bit above 500,000. Ethereum has also seen a massive rise since the period, moving to register a price of $4,500 from the initial price of $3,000 that it sold at the period. Notably, the price move of Ethereum was triggered by the massive decrease in the number of tokens in circulation.
Presently, the token is playing close to $4,200 per token. In the same time frame, Bitcoin has witnessed a considering rise, jumping to around $58,000 at this moment from a price of above $40,000 that it traded. The number of tokens burned has angered most token users, especially Su Zhu, the former CEO of Three Arrows Capital.
According to Zhu, Ethereum is no longer putting its users into consideration even with the massive support they have received in the past. He pointed out that the idea behind burning tokens and making tests while new traders can buy the tokens is not okay. However we look at it, Zhu’s anger is justified as new traders are being kept out of the Ethereum market. Factors like high transaction fees and high fees of the token have pushed most people out of the Ethereum market. But for already established traders, the burn is an avenue to make massive gains.