ETH Up 18% After Burning $100 Million in Fees Since EIP-1559

The London upgrade is now one week past and ETH holders are all standing around the bonfire with bags full … let the burn begin!

According to watchtheburn.com – a website dedicated to tracking Ethereum burns in real time – over 36,216 of ETH and counting has now been burned since the rollout of EIP-1559 on August 4. The new protocol changes will see the biggest blockchain in DeFi and NFTs become deflationary.

Since ETH is being burned on every transaction, fees previously paid to miners are now being destroyed, reducing the circulating supply and thus driving up the price. The EIP-1559 “Ethereum Improvement Proposal” altered the transaction fee structure for the network – instead of fees going directly to the miners that process and validate transactions, a base fee now goes to the network and is burned.

The upgrade has also doubled the maximum Ethereum block size, accommodating transactions that can contain up to 30 million in gas (the previous limit was 15 million). This is designed to help with periods of high demand.

Since the London hard fork, over US$100 million in ETH has been taken out of circulation and has seen the price of ETH increase from US$2,725 to around US$3,200.

Thanks to the mania surrounding NFTs of late, over 10 percent of the burned fees have come via transactions on NFT marketplace OpenSea. Who’s to know if the increase of ETH’s price is actually due to the London upgrade, since the market has recently seen a return to the upside across the board?

Regardless, sentiment on Twitter is largely bullish:

For more information, Crypto News Australia recently covered everything you need to know about the London hard fork.