Ethereum Testnet Begins Burning ETH Ahead of EIP-1559 Modification

The Ethereum (ETH) London hard fork got launched on the Ropsten testnet yesterday in anticipation of the mainnet rollout in July. This impending upgrade will implement the highly-anticipated EIP-1559 modification, which should adjust the Ethereum transaction fee calculation mechanism.

Meanwhile, the next phase of the London hard fork rollout is deployment on the Goerli testnet, scheduled to occur on June 30. After that, the hard fork will get launched on the Rinkeby testnet on July 7 and subsequently on the mainnet later in July.

Apart from adjusting the Ether transaction fee calculation mechanism, the EIP-1559 modification will burn the “base fee,” making the Ethereum economy more deflationary over time. Reports show that a website, known as Watch The Burn, got created to monitor this activity.

At press time, over 88,480 ETH (worth over $177 million with current prices) have gotten burned on the testnet.

ConsenSys, an Ethereum software solutions company, projected that the annual supply change on the Ethereum ecosystem would hit -1.6 million ETH due to deflationary operations. At current prices, that change amounts to the burning of $3.2 billion worth of ETH, which should reduce Ethereum’s annual supply rate by 1.4%.

Key Ethereum Levels to Watch — June 25

Etheruem remains in bearish momentum, following its flash-crash to the $1,700 low yesterday. Over the hours, ETH has failed to muster the bullish momentum to break the $2,000 psychological resistance and now faces the risk of falling to the $1,800 support.

That said, only a sustained break above the $2,000 mark can flip the trading sentiment for ETH in the coming days.

Meanwhile, our resistance levels are $2,000, $2,100, and $2,200, and our support levels are $1,800, $1,700, and $1,600.

Total Market Capitalization: $1.29 trillion

Ethereum Market Capitalization: $216.8 billion

Ethereum Dominance: 16.8%

Market Rank: #2

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