As Ultrasound.money reported, Ethereum in March 15 has reached 3 million ETH burned after EIP-1559 implementation. ETH is trading at around $1,710, so the amount ETH burned is worth more than $9.1 billion.
EIP-1559 is an important upgrade implemented by Ethereum in August 2021. It proposed a major change to Ethereum’s transaction fee mechanism in which transaction fees will have a base fee and a tip. Base fee calculated by the system that all users will pay for regular transaction speed and an optional tip that users can pay to speed up their transactions. EIP-1559 the burn the entire ETH spent as base fee, creating deflationary pressure on Ethereum.
Ethereum has burnt 1 million ETH on November 24, 2021, 2 million ETH on March 21, 2022 and 3 million ETH on March 15, 2023. Thanks to EIP-1559, the circulating supply of ETH on Ethereum is currently 64,300 coins lower than when The Merge upgrade was implemented in September 2022. Ethereum’s annual deflation rate is 0.108%/year. While Ethereum was still using Proof-of-Work, Ethereum recorded an annual inflation rate of up to 3,423%, with approximately 2 million ETH released to the market.
Activities that consume the most fees since the launch of EIP-1559 include transfers of ETH, stablecoin USDT and USDC; trading on DEX Uniswap and MetaMask wallet; and NFT transactions through OpenSea. Seeing the success and impact of EIP-1559 on Ethereum, other blockchain projects have also launched similar initiatives like EIP-1559 on Polygon and BEP-95 on BNB Chain.