Ethereum introduced the London update in early August 2021, which includes the burning of base fees with the aim of reducing the total supply and becoming inflationary. In recent weeks Ethereum has rarely burned more coins than were produced but today is the first fully deflationary week, which means that for 7 consecutive days more Ethereum has been burned than mined.
There are several sites that monitor the burning of Ethereum such as Ultra Sound which has been monitoring the progress of the burning since London was updated and the data is very interesting. In recent days, an average of 15k ETH has been burned for a value of about 60 / 65k million dollars, data that are pushing the value of Ethereum to new ATH right now.
To maintain a deflationary trend, gas wei (the average fees to be paid for transactions) must remain above 150, a figure which means that it is necessary to spend on average even tens of dollars for transactions, discouraging small movements, if not strictly necessary. .
Since the London update, more than 724,400 ETH - worth $ 3.1 billion - have been destroyed.
It is interesting to observe how in the Burn Leaderboard last 30 days, Uniswap V3 is the largest source of Ethereum burned, an indication of the great movement of liquidity and exchanges on the platform which, despite the high fees, certainly remains among the most active DEXs. Fees for Ethereum transfers represent the second largest cause of coin burning, definitely among the most used blockchains at the moment. Finally, in the third post Opensea, a platform dedicated to NFTs, really very active and not far from becoming the first reason for burning Ethereum, a position that it will probably reach by the end of the year.
The burning of Ethereum, its deflationary trend and the transition to the PoS expected in February 2022, could launch the coin towards very important highs of ATH even well beyond 10k dollars, as predicted by many experts in the sector.
More transactions means more fees, and more fees mean more ETH burned, therefore as long as the volume of daily transactions recorded on the Ethereum blockchain remains so high, it is reasonable to imagine that the deflation process can go on.
The PoS should also decrease the number of Ethereum per day due to an efficiency also in the production of blocks. It is also true that fees should be much lower and it will be curious to see if the deflationary trend will continue to persist, as many believe.
