Ethereum's daily supply is under pressure as the platform now burns thousands of ETH per day.
According to Etherchain, the world's first decentralized community support fund built on smart contract technology, by the people, for the people, Ethereum burns 4.23 ETH per minute. This is equal to 6,091.2 ETH burned per day. It is worth over $19 million at the time of writing.
Also, Etherchain shows that the second-largest crypto by market cap has burned a total of 54,482 ETH. This means Ethereum has burned over $172 million since Ethereum launched the London hard fork on August 5, 2021.
As per reports, the EIP-1559 update makes Ethereum transactions more efficient by using a hybrid system of base fees. Moreover, it tips the fees to more evenly incentivize miners in terms of high and low network congestion.
In addition, the update consists of many Ethereum Improvement Proposals (EIP), which introduce a fee-burning mechanism to the network. EIP-1559 forever removes some ETH from the circulating supply every time a transaction occurs.
Following this, Glassnode, a crypto aggregator said that the burning mechanism has a vital impact on ETH’s daily supply. As a result, the supply is under pressure.