Over 500,000 ETH Have Now Been Burnt!!!

Following the implementation of Ethereum Improvement Proposal in early August, the fee-burning mechanism became effective on the Ethereum network.

After the implementation, the miners’ fee that was previously used to reward miners for moving transactions was changed to a base fee. Now, miners can only be rewarded at users’ discretion via a tip, while the base fee is burned continuously.

With an increased number of transactions on the Ethereum network on a daily basis, more coins are getting burned, which increasingly makes Ethereum a deflationary asset with more coins burned than distributed.

With constantly reducing supply and fast-rising demand, traders and investors are liable to accumulate an asset while expecting a price increase. This has been the case for ETH in the market.

With Ethereum’s 26% growth in October, the effect of the feed-burning has clearly been positive. After the implementation in August,ETH experienced over a 20% surge in price but later lost its surging momentum.