The Ethereum network was upgraded to EIP-1559 in August and over 1 million ETH was burned in about 3.5 months. Ethereum has reached an important milestone. The value of ETH burned so far is more than $4.2 billion. This is more than the Gross National Income (GNI) of many countries.
Since August, 1,004,056 ETH has been burned on the Ethereum network. Currently, ETH is trading at $4,210. In other words, the amount of ETH burned so far is $ 4,227,075,760. This is the figure realized in a short period of 3.5 months. When we roughly calculate annually, close to 4 million ETH can be burned in the first year of the EIP-1559 upgrade, maybe more. This is more than the Gross National Income of many countries. Source about GNI (formerly GNP)
The fee-burning mechanism on the Ethereum network has been positively received by crypto markets. Ethereum (ETH) has increased by about 75% since the EIP-1559 upgrade. The purpose of burning is to reduce the circulating supply of an asset. As the circulating supply of an asset decreases, the value of the asset generally increases.
The burning rate on the Ethereum network is constantly increasing thanks to the NFT and DeFi industries. Interest in the NFT and DeFi industry is increasing day by day, which means more ETH will be burned in the future. If there is no negativity in the crypto markets, ETH may move higher in the future. My guess is that after ETH 2.0, Ethereum price could reach between 15% and 20% of Bitcoin (BTC) price.
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