In the past 24 hours, more than 10,000 ETH have been burned, according to the ultrasound. money Ethereum dashboard. Elevated burn rates are tied to the NFT project that burned more than 1,000 ETH, which makes it the largest spender on the network. NFT marketplace OpenSea, which holds second place, has only burned 100 ETH in comparison.
In addition to the large volume of burned coins, the gas price has also soared to extreme 2,000 Gwei levels. According to Etherscan blockchain explorer, in order to complete any transaction on the Ethereum blockchain, users should have paid almost $200 with the minimum gas fee of $167 at some point.
Even though the EIP-1559 update took place almost a month ago, the base fee concept and fee-burning mechanism still led to high network congestion and elevated fees. At this point, the burn rate remains at 4.2 ETH/min with a total of 145,000 ETH burned. U.Today has reported a reach of 100,000 burned ETH previously. In the past two days, there was more Ethereum burned than in the previous two weeks. According to the developer’s blog, such events may happen in periods of major network congestion.
The next upcoming major Ethereum network update will take place on Feb. 3, when the proof of work (PoW) mining algorithm will no longer be supported by the chain, forcing Ethereum to work only via proof of stake (PoS). After the merge, the Ethereum supply is expected to start decreasing, with ETH becoming a deflationary asset.
At press time, the current Ethereum price remains at $3,359, while moving in the consolidation range of $3,380 and $3,000. The local top of the coin’s price remains at $3,381.