The Ethereum network hits another record after breaking the ATH on the market, which is $4 billion worth of Ethereum coins burned already, according to Watcher Guru.
The burning mechanism
The burning mechanism on the Ethereum network was presented in August as part of major fee structure update EIP-1559. With the implementation of the burning mechanism, fees that previously went to Ethereum miners are now being burned.
Due to the rapid increase of DeFi, NFT and dApp popularity, the burn rate on the network has been increasing continuously. The major fee increase is currently at around 150 GWEI, which was considered extremely high a couple of months ago.
Previously, U.Today reported that weekly Ethereum issuance hit negative for the first time in the coin's history. The current week is still holding the positive issuance mark with 7,500 ETH coins issued. More than 86,000 ETH were burned and 93,000 given out as rewards.
The net reduction in issuance compared to periods when the fee-burning mechanism was not active reaches 64%.
As for the price of Ethereum, it has been steadily moving up since the beginning of October and has now reached 68% profit and gained more than $1,900 in value. In addition to that, Ethereum sets a new ATH for the second consecutive week.