It has been a few weeks since the successful London hard drive cryptocurrency ETH. To date, a number of ETH coins have been burned, which correspond to current prices one billion dollars.
ETH continues to burn successfully
Anthony Sassano, the founder of the EthHub and Daily Gwei portals, came up with this interesting fact, specifying that the number of ETH burned exceeded the value 300 000.
The combustion process itself was started on August 5. Representatives of the ETH network, led by Buterinom they had high expectations of this process, which was confirmed by very positive results. The EIP-1559 protocol can efficiently burn transaction fees, which have thus logically been reduced. However, this is still not enough.
Is ETH a deflationary asset?
The actual combustion rate is approximately 5 ETH per minute, which is approximately 7,200 ETH per 24 hours. The network is currently one of the busiest on the market, mainly due to the boom around NFT tokens. The current inflation rate represents a value 2.3%. However, the goal is clear: ETH must become a deflationary asset. This means that more ETH is burned than is actually extracted.
This whole state should occur by merging ETH 1.0 a ETH 2.0. According to the latest information, the transition to Proof of Stake is planned for the first or second quarter of 2022.
The biggest downside that needs to be improved is transaction fees. Currently, average fee rates are $ 23, with more complex tasks requiring up to $ 55.