@BOMBERuss 4 September 2021 more from that month

The proposal to improve the Ethereum network EIP-1559, released with the London hard fork, exerted deflationary pressure on the coin. The offer was issued in order to slow down the growth rate of the ETH offer, but more coins were burned than issued in the last 24 hours. EIP-1559 was a proposed coding change for the Ethereum blockchain, which allowed increasing the block sizes so that more transactions could be sent through the network. The Ethereum network is struggling with congestion due to the popularity of NFT and decentralized financial applications, such as the Aave lending protocol and the Uniswap exchange, as such tools use limited network resources. Part of the proposal was to set a base fee for each transaction. Instead of continuing to flow to miners who verify network transactions, the base fee will be burned. In other words, it is withdrawn from circulation by sending it to a wallet that does not have access to. The idea was to reduce the total volume of ETH, which, unlike Bitcoin, does not have a final limit. As a result, the price of Ethereum will theoretically rise to meet the demand. Although EIP-1559 reduces the growth rate of the ETH supply, it does not necessarily reduce the ETH supply. This is due to the fact that with each block produced, miners still receive newly mined ETH coins. As long as the number of newly mined ETH exceeds the burned base fees, the total supply of ETH increases. However, this is no longer the case today. Over the past day, the supply growth has become negative. More ETH was burned than was issued to miners from 12,500 to 13,000 ETH. This became possible because the base commission increases during periods of increased demand for Ethereum transactions. DeFi Pulse co-founder Scott Lewis and Week in Ethereum News founder Evan Van Ness believe that this is the first such case when Ethereum has become deflationary. According to the tracking website EIP-1559 Ultrasound Money, more than 188,000 ETH has been burned since the code change took effect on August 5. This is equivalent to $ 736 million. The change directly caused an increase in the price of the coin. Ethereum has grown from $ 2,516 on August 4 to $ 3,926 today, 56% more than in one month. #Cryptocurrency