Ethereum Price Rallies into EIP-1159 With Over 4000 ETH Burned in 24 Hours

Over 4000 ETH burned, as Ethereum Hard Fork rally smoothly outperforms Bitcoin.

By
Dardania Havolli
on
August 6, 2021
Category:
Blockchain News

Price Surge After EIP-1559 Executes

So far, over 4484 Ethereum (ETH)––or $12.3M at ETH’s current price of around $2.7K––has been burned following the Ethereum ‘London Hard Fork,’ according to EtherChain.

The ‘Hard Fork,’ which went ahead at 12:34 PM UTC on Aug.5, was a long-anticipated alteration to benefit Ethereum’s erratic gas fees. This is achieved by securing a base gas fee that gets permanently burned during each transaction.

“I think Ethereum might flip the bitcoin market cap in the long term, but not this year,” According to CryptoQuant CEO Ki Young Ju, who voiced his opinion in a far-ranging WuBlockchain report.
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ETH is currently up 14.2% against BTC in the last seven days, according to CoinGecko.  Despite the initial positive movement, the life-changing moves prompted by institutional adoption are still likely to take a few years for many. 


DeFi Influence

Currently, ETH is being burned at a rate of 3.14 ETH per minute, according to EtherChain.

Decentralized Finance (DeFi) has had an important say in ETH’s burn, with UniSwap protocol founder Hayden Adams even tweeting that in the initial hours of EIP-1559s launch, UniSwap burned 80 ETH and at this rate would burn 350k ETH, or around $1B a year. 

If the burning of ETH surpasses the amount of ETH issued, the cryptocurrency will effectively become a deflationary asset, which will no doubt prompt a price rise. This is the reason why we’ve seen so much new around the hard fork.


Ultrasound Money?

Ethereum will reach ‘Ultrasound Money’ status according to Joe Lubin, but what does that even mean? Ethereum co-founder Joe Lubin made the intriguing comment while in an interview with Emily Chang of Bloomberg TV. 

Bitcoin enthusiasts have often relied on the fact that it retains a limited supply of 21 million to maintain its value, referring to it as ‘sound money’. With Ethereum looking toward a deflationary move, this has prompted many supporters to refer to it as ‘ultrasound money’, prompting a slew of memes on social media. 

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It seems the initial signs of the move are indeed positive, but the hugely exciting developments may lay somewhere in the near future. It may not have been the monumental change some expected, but the news of the hard fork indicated a gradual move in the right direction. 


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Dardania Havolli

Dardania is an experienced researcher, editor and writer who is currently completing his PhD in Creative Writing. He is passionate about blockchain technology and the impact it will go on to have on our lives.

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