Six weeks after Ethereum’s London upgrade went live, the network has burned $1 billion worth of ETH.
Data obtained from WatchtheBurn confirmed that over 308,000 ETH worth over $1 billion had been burned post-London.
The London, which featured EIP-1559, introduced a new burning mechanism. Consequently, Ethereum transactions now require a base fee that will be burned. Miners receive a part of the burned fee as a tip.
Overall, the update has been effective as a deflationary tool so far, lowering the network's inflation rate. It has been able to reduce the ETH produced daily and increase the burned ETH. The amount of ETH burned has surpassed the amount produced daily.
One of the main reasons for the spike in burned ETH is the network’s currently high transaction fees. Ethereum handles not less than 1.2 million transactions on the network daily, and according to BitInfos, the average transaction fee as of September 16 was $27.
Although the ETH burned this week is lower than the previous week, the amount to be burned in the upcoming 2-6 months or even a year will be unimaginable.