Ethereum EIP-1559 Upgrade Burns $400 Million in ETH

The Ethereum EIP-1559 upgrade has burned over $400 million ETH. Over $400 million in ETH has now been taken out of circulation by a network upgrade that destroys transaction fees.

Ethereum EIP-1559 Upgrade Burns $400 Million in ETH
Ethereum EIP-1559 | Image: Optimisus

According to Etherscan, around 200 ETH ($643,000) are burned per hour. However, the milestone was reported on Sunday when the Ethereum blockchain burned 124,865 ETH.

Note that the company introduced EIP-1559 to stabilize Ethereum’s volatile transaction fees and speed up the switch to Ethereum 2.0, the next generation of the Ethereum blockchain.

Moreover, EIP-1559 craziest burn was on August 27. It burned approximately 11,176 ETH worth of around $35.8 million with ETH's current price at the time of writing. What is more, it coincided with high transaction fees, with the average fees rising to $38.3.

With EIP-1559, miners are in pain due to proof-of-stake “validators.” In addition to this, Ethereum is expected to switch to the proof-of-stake (PoS) mechanism by the end of the year.