Main navigation

Ethereum EIP-1559's First Hours: Deflationary Block Mined, Gas Prices Back to Normal

News
Fri, 08/06/2021 - 10:15
article image
Vladislav Sopov
Here's what happened on Ethereum (ETH) network in first few hours after London hardfork activation
Ethereum EIP-1559's First Hours: Deflationary Block Mined, Gas Prices Back to Normal
Cover image via stock.adobe.com
Read U.TODAY on
Google News
Contents

The Ethereum (ETH) network activated its most crucial and hotly anticipated upgrade, London, 20 hours ago. Here is what happened with Ethereum (ETH) over the past day.

Fees rollercoaster

The most eccentric and controversial update included in London reshaped its fee model. For the first time in Ethereum (ETH)'s history, the "auction" model (higher fee = faster transaction) is abandoned in favor of a mixed one.

Although EIP-1559 was not designed to reduce fees, many Ethereum (ETH) owners expected this reduction. By contrast, right after the upgrade activation, the median fee on Ethereum (ETH) surged over $30, as in periods of dangerous congestion.

However, in a few hours, Ethereum (ETH) fees were back to normal. Tim Beiko, hardfork coordinator at the Ethereum Foundation (EF), foresees that fees will drop even lower as more miners upgrade their software to London's settings.

First deflationary blocks

Also, EIP-1559 implemented periodic fee destroying ("burning"). The base fees (mandatory transactional commissions) are destroyed after every block.

According to data from public explorers, 4,380 Ethers (ETH) have been burned by press time.

However, as miners' rewards are (normally) larger than to-be-burned fees, Ethereum (ETH) is not a deflationary asset thus far. Yesterday, Ethereum (ETH) witnessed some blocks where more Ethers were burned than mined.

Ether price double-digit upsurge

The Ethereum (ETH) price also saw a bumpy, but overall green, 24 hours. Right after the upgrade, the price dropped to a three-week low of $2,529 in a moment, but it immediately started to recover.

In less than two hours, it added almost 12 percent and printed a local peak at the unbelievable $2,820 on major spot exchanges.

Ethereum (ETH) price pushed to two-month highs
Image by Binance 

Today, Aug. 6, 2021, ETH touched $2,850, which is its highest price since June 6. Thus, the EIP-1559 implementation pushed the Ether price to two-month highs.

What else will Ethereum's London bring?

When will Ethereum (ETH) PoW mining vanish?

Be sure to give our comprehensive guide a read!

Related
Ethereumโ€™s EIP-1559: Comprehensive Guide to London Hardfork

article image
About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)