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The Ethereum blockchain is on fire.
EIP-1559, a recently implemented upgrade that burns transaction fees that used to go to miners, has burned more than 200,000 ETH (about $675 million at the prices at when it was burned).
A total of 204,281.8 ETH has been burned, worth some $682 million, according to ethburned.info.
Each hour, approximately $1.2 million worth of ETH, or 300 ETH, is burned. Today, 4,877 ETH has been destroyed. The network consumed 10,675 ETH yesterday and 13,839 ETH on Friday.
EIP-1559 was introduced in early August as a means of speeding up the transition to Ethereum 2.0, the next generation version of Ethereum that shifts the blockchain from proof-of-work, a computationally intensive method of verifying transactions, to proof-of-stake, an environmentally friendly algorithm that uses far less energy. To accomplish this, EIP-1559 removes ETH from circulation rather than paying it to miners who confirm transactions using proof-of-work computations.
The move to EIP-1559 was unpopular with miners who had shelled out money for graphics cards that are adept at mining Ethereum.
Ethereum will “merge” with the proof-of-stake version of its blockchain later this year or early in 2022. However, it will take a few years before Ethereum 2.0 will have the same smart contract functionality as Ethereum 1.0.
One expected side effect of EIP-1559 was that fees would decrease or become more predictable. However, Ethereum fees remain exorbitant—and are expected to rise further due to the continued comeback of NFT initiatives.
A single swap on Uniswap costs $76.31 at the time of writing, and an ERC-20 transfer costs $24.8. The largest gas guzzler is NFT marketplace OpenSea, which utilised 11.65% of all gas on the Ethereum network in the last 3 hours and 15% in the last day.
Miners will undoubtedly be envious.