Ethereum burned 1 million ETH worth $4.28 billion thanks to EIP-1559

11/24 Ethereum (ETH) recorded a historic milestone when surpassing the threshold of 1 million ETH burned by the EIP-1559 upgrade.

After 111 days from the event London hard fork To support EIP-1559 on August 5, Ethereum crossed the threshold of 1 million ETH burned. At $4,280/ETH at the time of writing, this amount is worth up to $4.28 billion.

EIP-1559 is an upgrade to impose a BASE FEE mechanism for Ethereum transaction fees. This mechanism prevents fees from suddenly skyrocketing, affecting the usage of users. In addition, a part of transaction fees will be burned to create deflationary pressure.

The success of EIP-1559 is in no small part due to the extremely high level of application of Ethereum in the second half of 2021, with the trend of NFT and games blockchain helped create a large volume of transactions to burn ETH. Whereby, OpenSea and Axie Infinity are two typical representatives. In addition, projects DeFi large as Uniswap, MetaMask, 1inch and SushiSwap continues to maintain its position as the "lifeline" of ETH and other stablecoins on Ethereum like Tether (USDT) and USDC Coins (USDC) travels throughout the ecosystem.

Even so, the network cryptocurrency the second largest in the world is still "obsessed" because of the problem of too high transaction fees. This is also the reason for the recent controversy of the investment fund Three Arrows Capital (3AC) with the community of ETH supporters, leading to the 3AC announced to stop supporting Ethereum.

Besides, with the success of EIP-1559 in reducing the supply of ETH, the blockchain Others are also proposing to burn coins, most notably Binance Smart Chain with upgrade BEP-95 implemented on 11/30.