Commissions totaling more than $100 million were burned on the Ethereum network after the EIP-1559 update went into effect.
Last week’s London hardfork on the Ethereum network led to the deployment of a controversial EIP-1559 update that burns a portion of transaction fees in order to form a deflationary mechanism on the Ethereum blockchain. With each new block added to the chain, a new ETH is created, which is sent to the miner as a reward, but some of the ETH is removed from the network.
More than $100 million in ETH was burned or withdrawn from circulation following the hard fork, according to Nomics, pushing the price of ETH from $2,725 to $3,230. According to the site ultrasound.money, about 31,000 ETH have already been destroyed.
More than 10% of burned-out fees come from fees on the OpenSea NFT platform, which sells non-fungible tokens on digital collectibles and art. Uniswap decentralized exchange and blockchain-based Axie Infinity game rank second and third in burn rates, consecutively.