The Ethereum network has burned over $300 million worth of ETH since its London upgrade went live.
The upgrade introduced the much-talked-about EIP-1559 fee-burning mechanism. And in just 20 days since London went live, the network has burned a total of 100,000 ETH valued at over $300 million.
Following the upgrade, users are required to pay a based fee for transactions on the Ethereum network. While the base fee gets burned, there is also a priority fee that is more or less a tip to the miner.
The upgrade has significantly lowered the level of inflation on the Ethereum network. Although Ethereum’s supply increases by about 5% per annum, it has reduced by 35% due to the amount being burned in transaction fees.
Apart from adding a deflationary element to Ethereum, the London upgrade has also increased the capacity of the network. The network capacity of Ethereum increase by about 9% post-London, BTC PEERS reported.
The daily gas used, which indicates the overall capacity of the network, rose from about 92 billion to over 100 billion, the most notable change that has occurred since it rose by 17% on April 21.