Ethereum 2.0 Altair Beacon Chain update started successfully, with 98.7% of nodes upgraded at the time. This marked an important step towards the Merge, the transition to a proof-of-stake consensus mechanism.
Since July, Ethereum has also undergone significant upgrades, such as the London hard fork. This update incorporated a deflationary burning mechanism to the asset as part of the network’s fee structure.
Fast forwarding so far, ETH and its burning mechanism have come a long way in the midst of the latest update. According to Etherchain, Ethereum burned 10.06 ETH worth $42,895 every minute over the last 24 hours. In total, it torched around 701,630 ETH, or the equivalent of $ 3 billion (approximately), at the time of writing.
Other similar platforms have showcased the same narrative. For instance, Ultrasound.money, an ETH supply-tracking site inferred the following insights. The OpenSea non-fungible token (NFT) market is responsible for burning the largest number of ETHs, torching 91,172 ETH worth over $ 398 million at the time of writing. Here is the list of others:
The decentralized exchange (DEX) Uniswap (version 2) with a total of 51,331 ETH worth over $230 million falls in this category as well. Ergo, NFT, and DeFi are currently the two main use cases for Ethereum.
Now, needless to say, the sheer amount mentioned above amounts to billions of dollars. For example, the Chinese journalist Wu Blockchain tweeted as follows:
The said report, highlighted key attributes concerning the largest token. It noted,
“Ethereum’s current burn rate is around 5 ETH/min, and the average burning value of a single block remains above 1.1 ETH. The new annual Ethereum supply is 5 million, that is, which means that at the current burn rate, more than 50% of the new supply is burned in. If ETH1.0 and ETH2.0 are successfully merged, Ethereum may move toward deflation.”
A few other metrics have impacted Ethereum’s achievements in recent times. Beyond the points mentioned above, institutional adoption has played a crucial role.
Consider this, 12 Ethereum securities products held a total of 1.4294 million ETH, valued at more than $5 billion, or accounting for 1.23% of the Ethereum market cap, the report noted. CoinShares Ether Tracker Euro, an Ethereum securities product under CoinShares, held nearly 380,000 ETH, ranking number one among Ethereum securities products.
Moreover, pro-ETH analysts have maintained their bullish viewpoints regardless of certain consolidation periods. Now or in the past.
