Nearly a week into EIP-1559 airing, the Ethereum (ETH) network has burned nearly $ 108 million in base costs. This means that at the time of writing, over 35,000 ETHs were burned and wiped out from the cycle that contributed to this asset price spike last week.
The base fee is an algorithm that determines the price for users to pay for transactions in Ethereum.
It is worth noting that the London hard fork starting with EIP-1599 is one of the efforts to support the growth of ETH supply, boosting the price of the asset by 18.7%.
EIP-1559 has simplified the situation where miners who process and validate transactions will no longer be involved in coin burning. Instead, these improvements introduce a wallet -determined base cost mechanism, where a transaction takes place before the base cost is burned.
Wallet owners can then add a tip into the transaction if they want their transaction to be put into a quick block which will result in a faster confirmation period.
Since the launch of the EIP-1599 on Aug. 5, the Ethereum price has shown sustained momentum to over $ 3,000 two days ago.
Its founder, Vitalik Buterin also did not miss the excitement of the improvements this time around, claiming the combination of ETH 1.0 and ETH 2.0 scheduled for 2022 is a better ecosystem change.
At the time of writing, ETH is trading at $ 3,088.49, down more than 4% in 24 hours.
