Etherum, the world’s biggest altcoin, has ‘burned’ $230 million worth of ether in just over two weeks. This is the result of the highly-anticipated London upgrade which included the Ethereum Improvement Proposal (EIP) 1559.
Burn Baby Burn
According to Bitcoin.com’s calculations from August 22, the Ethereum network burned 73,784 ether in as few as 17 days. Using today’s exchange rates, this is worth over $230 million. The process of ‘burning’ involves taking a usable token or a fraction of one out of circulation. The idea behind it is to slow crypto inflation rates by lowering the number of available coins.
Etherum’s burning kicked up after the blockchain introduced the London hard fork upgrade on August 5. The upgrade’s most notable element is the EIP 1559 which, among other changes, causes part of the transaction fees to burn. Currently, the burn rate stands at about 3.76 ETH per minute.
“The London upgrade is one of the most interesting and important upgrades in the history of Ethereum,” Kyle Samani, co-founder of investment firm Multicoin Capital, which holds Ether, told Bloomberg News in July. He pointed to the reduction of the coin’s supply as a way to boost prices through scarcity.
Leading Financial Infrastructure
The London upgrade could possibly cement Etherum’s status as a leading financial infrastructure, as opposed to Bitcoin which has emerged as a preferred store of value. Reuters recently quoted a Grayscale report as showing that Etherum was settling over $12 billion of daily transactions.
The coin has also become one of the top choices of the gambling industry, with a growing number of online casinos accepting Etherum.