Since the successful launch of London’s hard-fork and protocol EIP-1559 a few months have passed. To date, more than 516,000 ETH tokens. This fact is more than positive for the market.
EIP-1559 has a positive market effect
Data brough Etherchain, according to which more than half a million ETH tokens have been burned to date. At the time of writing, the price was fluctuating 3573 USD which represents a value greater than $ 1.78 billion.
The EIP-1559 protocol can be defined as a mechanism that ensures the burning of transaction fees. For miners, these are significant changes. The remuneration they received for the transfer of transactions is newly presented as a basic fee. IN basically it’s like a tip, with the base fee being incinerated.
The more transactions performed on the network, the more ETH tokens are burned per day. ETH thus gradually becomes a deflationary asset. So many more ETH tokens are burned than are extracted.
The greatest expectations are, of course, placed on the price of ETH. As the number of coins decreases, the price should increase. As supply continues to decline and demand grows, traders and investors tend to accumulate ETH tokens because they expect price growth.
We can say with certainty that this effect really works. The price of ETH increased in October by 26%. Immediately after the update, the result was also quite acceptable, with the asset increasing by approximately 20%.
We will see what the future of Ethereum will be. However, the expectations are high. Analysts often say that the second largest cryptocurrency could reach the end of the year $ 10,000.