Following the London hard fork update, 1.15 million Ethereum (ETH) has indeed been burnt, as per IntoTheBlock statistics. Approximately four months later the London upgrade, 1.15 million ETH in base charges, valued more than $4.7 billion at the prevailing price of ETH, was “burned” and irreversibly eliminated from the floating supply.
The London update came online on August 5, 2021, and features Ethereum Improvement Proposal (EIP) 1559, which intends to modify the method of determining transactional costs, or “gas fees.” The Ethereum transaction cost is made up of two types of charges: the basic charge and the priority fee. The base cost is a fixed sum that a client needs to pay to have their transactions recorded in a block, but the priority charge, or tip, is discretionary and can be provided to urge miners to prioritize the transaction.
The fee market update in EIP 1559 established a 12.5 percent base charge increase or drop every block, depending on the degree of demand in the prior block.
Owing to on-chain analytics firm IntoTheBlock, the “base fee” is being consumed at a rate of 11,500 ETH every day. This amounts to a total of 1.15 million ETH tokens ever since the start of the London hard fork upgrade.
The value of Ethereum
The hype around the London hard fork update drove the price of ETH to a high of $2,845 during launch, Aug. 5. Following then, the price of ETH has continued in a rising trend, reaching all-time highs of $4,867 on November 10.
ETH has risen about 40 percent at the current price of $4,044 approximately four months since its introduction. As per CoinMarketCap statistics, the market capitalization of Ethereum as of time of writing is $479.7 billion.