Ethereum Breaks Burn Records Since Last Update – BeinCrypto

Ethereum continues to evolve ahead of its merger. Its token is not to be outdone and enjoys a popularity that should continue to expand thanks to burn. However, this phenomenon also raises concerns.

Less ETH but more benefits for holders

Ethereum is increasingly preparing for its merger and the event seems to promise a bright future for its token. So, despite its recent price decline, its growing popularity and widespread enthusiasm within the crypto sphere make it a prominent asset in the industry. Although The Merge is considered a true transition, the latest Ethereum update was no slouch.

Performed during the month of August 2021, the upgrade titled EIP-1559 generated a lot of interaction within the blockchain. The already existing costs have been divided into two categories. A token burning mechanism has also been implemented. This is now triggered with each Ethereum transaction carried out, with nearly a million tokens destroyed in a few months. According watch the burn, a year after this update, the number of ETH burned would now stand at 2.6 million. That’s about $3.9 billion at the time of writing this article.

Source: Wu Blockchain Twitter account

The latest update initiative will have reduced the amount of ETH available, ensuring a higher value token, but the benefits don’t stop there. Indeed, Ethereum would be well on its way to becoming a deflationary asset, with an inflation rate falling of 55.77%. Burning since the EIP-1559 upgrade has significantly reduced the number of coins available for circulation. After The Merge, ETH issuance is expected to decrease by 90% and increase the annual return for holders.

However, mistrust remains for the asset community

While expectations for the merger are high, some shadows darken the picture. Starting with the weak performance of ETH since the end of last week. Vitalik Buterin’s token is currently holding around $1,500 but its price remains firmly in the red, halting a much-hoped-for rally of late. Despite this dip, Ethereum does not seem to be in crisis with curves that have been climbing slowly for three months.

Likewise, the Tornado Cash case could loom as a hurdle for Ethereum as the authorities’ grip on the crypto looks increasingly solid. According EduBourse, Ethereum’s move to Proof-of-Stake could make validators very important. Its blockchain would thus be more open to censorship and, in the event of sanctions, would force them to submit to the authorities. Enough to paralyze the entire project in the event of abuse or scandal. Finally, the shadow of the speculative bubble would remain threatening above Ethereum 2.0, promising a severe fall at the slightest inattention.

The Merge therefore seems eagerly awaited but also with some apprehension.

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Ethereum Breaks Burn Records Since Last Update – BeinCrypto


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