Immediately after the activation of the London update, which took place on August 5, the average altcoin burn rate per minute was at the level of 3 ETH. On September 10, this figure was 5.12 ETH, writes RBC
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According to ultrasound. money, on September 10, 264.7 thousand digital coins ($ 897.5 million) were destroyed on the Ethereum network. Most Ethereum has been destroyed since August 5 as a result of:
- deals on the OpenSea NFT marketplace (38.5 thousand ETH);
- internal transfers of altcoin (22.6 thousand ETH);
- transactions on the Uniswap decentralized crypto exchange (14.5 thousand ETH).
What is burning
Burning tokens is the destruction of a certain number of tokens to reduce their number in circulation. This method is used to combat inflation and increase the value of cryptocurrencies.
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All coin burning operations are recorded on the blockchain as a transaction, so anyone can verify that the coins have been destroyed.
On August 5, the London hard fork took place on the Ethereum network. Within its framework, the burning of a part of transaction fees was implemented depending on the network load. Before the release of the update, Ethereum was not burned.
On September 4, for the first time in the history of the existence of Ethereum, the emission of the altcoin became negative. More digital coins were burned that day than new ones were issued.
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In early September, the price of Ethereum for the first time since mid-May exceeded $ 4,000, and on September 7, as a result of the collapse of bitcoin, the price of the altcoin dropped to $ 3.3 thousand. On September 10, the cryptocurrency was trading at $ 3.4 thousand, its capitalization was $ 400.7 billion. according to CoinGecko.