Ethereum, the second-largest cryptocurrency by market cap, has been burning approximately $10,000 every minute since its upgrade to EIP-1559.
The upgrade, called “London,” includes EIP 1559, which aims to change how transaction or gas fees are estimated. EIP-1559 will significantly reduce the gas costs of smart contracts executed on Ethereum and make it easier for users to complete transactions.
Uninteruptiopn Costs $10k a Minute?
The upgrade allows smart contracts and decentralized apps on Ethereum to handle higher volumes without being interrupted.
EIP 1559 is not considered done until Ethereum Core Devs “specifically notices that testing on Ropsten has been completed.” Transaction fees are paid in ether, and Ethereum developers implemented the new upgrades on Wednesday night.
Many were unhappy with this change because they believe miners will now control more of Ethereum’s future. Furthermore, the current burn rate per Etherchain is ETH 2.08 – or USD 5,774- per minute. This would translate to a whopping $346k each hour! In 24 hours, some $8 million worth of ETH will have been burned with no end in sight.
As reported Thursday, the Ethereum London upgrade arrived in full force with a new EIP that will help improve the fee market. With this new addition to their system, each transaction now includes an automatic token burn mechanism, which is good news for traders and investors alike.
Is the Burn Rate Too High?
In contrast to some reports, Hasu (crypto researcher) stressed that the current burn rate would not last forever. One individual criticized the new service as being less predictable than before, which they had not hoped for. They also stated that their fee doubled from yesterday to today, and no one knows why it happened or how much it will change tomorrow.
Vitalik Buterin, a co-founder of Ethereum, told Bloomberg that “1559 is the most important part of London” about his partnership with industry leaders and officials. Vitalik also added that he believes this recent upgrade will show future proofing for any possible issues and prove how much they care about their community’s feedback.
The upgrade will improve the fee market for traders and investors alike by including an automatic token burn mechanism for each transaction that comes as the good news. It’s important to note that this current burn rate won’t last forever, but until then, it would be wise to make sure your transactions are being handled in a way that helps you avoid any fees or delays. So far, the price of ETH has not been affected too much.