Ethereum Burns $1 Billion Worth of Tokens Since London Hard Fork Implementation
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New reports show that over $1 billion worth of tokens has gotten burned since the implementation of the Ethereum (ETH) London hard fork in August.
The new report comes from Dune Analytics, which reported that a total of 303,681.05 ETH (worth $1.067 billion at press time) originally designated as a reward for miners has become unusable since the network’s hard fork.
Many Ethereum users complained about the looming inflation rate, which translated into higher network gas fees, prompting the burning mechanism. That said, the inflation rate on the ETH network has regressed ever since, as miners have to give up a portion of base fees, which they originally pocketed.
Before the update, miners realized as much as 13,000 ETH daily as a reward for processing transactions on the network. After the update, this figure dropped to 6,000 ETH.
While many might question the number of tokens getting burned, the network has recorded a significant increase in demand due to the burning mechanism.
Currently, Ethereum is the go-to Blockchain for non-fungible tokens (NFTs) and decentralized applications (dApps) developers, thanks to its robust ecosystem.
Interestingly, the ETH hash rate has also benefited from the London update and has touched a new record high of 715.4 TH/s, which shows that miners are even more committed to the network.
Key Ethereum Levels to Watch — September 17
Following a decent rebound from the base of our eight-week-long ascending trendline on Monday, ETH met intense bearish pressure at the upper-$3,600 area, which forced a 7% decline to the mid-$3,400 area in the past 24 hours. We can observe an unusual confluence of support at the $3,400 line, including the psychological property, the 50-day SMA, and the 200-day SMA.
That said, we expect a bearish continuation to close the gap at $3,400, followed by a rebound towards the $3,700 level and higher, considering that ETHUSD is in an upswing cycle.
Meanwhile, our resistance levels are $2,570, $2,650, and $2,750, and our support levels are $2,480, $2,400, and $2,300.
Total Market Capitalization: $2.13 trillion
Ethereum Market Capitalization: $408.5 billion
Ethereum Dominance: 19.2%
Market Rank: #2
