Following the implementation of the long-anticipated Ethereum’s London hard fork on August 5, 2021, fresh data shows that more than a billion dollars worth of ETH has become unusable through a burn mechanism.
Over 300k ETH Burned
According to Dune Analytics, a total of 303,681.05 Ether, which is worth $1.032 billion at the time of writing, that was originally designed to be rewarded to miners as part of fees, has been burned in less than two months since the last network upgrade.
Many Ethereum users have complained about looming inflation as a result of the high fees miners are receiving for processing transactions on the network, prompting developers to add a burning mechanism.
With the implementation of the London hard fork, the inflation rate of Ethereum is gradually reducing, as miners are forced to part with some of the users’ fees known as base fees, which they would have originally kept for themselves.
Prior to this time, Ethereum miners minted as high as 13,000 ETH daily, which they received as rewards whenever they processed transactions on the network.
However, since the launch of Ethereum Improvement Protocol 1559 (EIP-1559), the burning mechanism has reduced that amount to about 6,000 ETH.
High Demand Keeping Miners Afloat
While it may come as a surprise to many why tons of ETH were burned in just over a month, the network has enjoyed an increasing demand recently.
Ethereum remains the favorite blockchain for non-fungible tokens (NFTs) and decentralized application (dApps) developers, with countless projects being unveiled on a day-to-day basis.
These activities have resulted in several transactions being carried out on the second-largest blockchain. Interestingly, data from Ycharts suggests that Ethereum daily transactions have remained as high as 1.2 million in the past week or so.
Ethereum Hashrate Sets New ATH
Despite the large volume of ETHs burned from miners’ fees, one would think there would be an exodus of miners from the network to similar projects.
However, miners have remained resilient and shown commitment to the network as transaction volume and ETH prices continue to surge.
Two days ago, CryptoPotato reported that the Ethereum hashrate reached a new all-time high (ATH) of 715.4 TH/s, which indicates stronger miners’ commitment to the second-largest cryptocurrency.
Ethereum Price (ETH) Inches Closer to the $4k Mark! Institutional Investors seem Bullish
Over the last 24 hours, the market has been in the green. Ethereum is up 4.04 percent, while Bitcoin is up 3.74 percent. Early on, the Ethereum cryptocurrency entered a little bullish phase, and the price of Ether appears to have breached the level of $3,800.
In the previous few days, ETH has made a significant advance, and the coin is currently approaching a test of the $4k threshold.
A several-day sluggish retreat from the barrier was visible to the $3,400 mark. A firm foundation was built earlier this week after multiple efforts to break lower.
According to popular analyst Michael van de Poppe, December is frequently the ideal time to buy altcoins.
He claims that If history repeats itself, we might see a 200 percent run on $ETH/BTC towards the ATH region from there, but first there will be a larger pullback while #Bitcoin continues to perform well.
December is often the best period to buy #altcoins.
If history repeats, we might be getting a run of 200% on $ETH/BTC towards the ATH region from there, but first a heavier correction while #Bitcoin does well. pic.twitter.com/Op0grUEq3L— Michaël van de Poppe (@CryptoMichNL) October 15, 2021
ETH Price to $4000!
Fundstrat, an independent financial research firm, has some exciting news for Ethereum fans. According to the firm’s technical research, Ethereum is on the verge of a massive bull run that will push it past previous all-time highs.
“Ethereum Looks To Be Starting To Gain On Bitcoin After A Near One-Month Period Of Underperformance Throughout September.”
The crypto’s soaring market share, according to Fundstrat, will propel it over the psychologically significant $4,000 threshold. A convincing move above $4,030 would bolster the bulls, putting the coin on track for a new all-time high of $4,950.
Crypto exchange Coinbase recorded a withdrawal of 400k Ethereum yesterday, according to on-chain data. This could be a hint of institutional investment activity, which would be good for the coin.
Approximately 400k ETH (1.5 billion at the current exchange rate) was removed from the crypto exchange Coinbase yesterday, according to a CryptoQuant report.
The fact that institutional investors are bullish on ETH could spell disaster for the cryptocurrency. If ETH is to advance to the next level, it will require a significant amount of capital, which normally means that whales such as institutional investors will be required to participate.
Ethereum Forecast October 18 — 22, 2021
Ethereum ETH/USD ends the trading week at 3847 and continues to move as part of the rise and the formation of the ”Triangle” pattern. Moving averages indicate a bullish trend for ETH/USD. Prices went up from the area between the signal lines, which indicates pressure from cryptocurrency buyers and a potential continuation of growth from the current levels. At the moment, we should expect an attempt to develop a price correction and a test of the support level near the area of 3055. Where can we expect a rebound and a continuation of the rise in the rate and value of Ethereum with a potential target above the level of 4755.
Cryptocurrency Ethereum Forecast October 18 — 22, 2021
An additional signal in favor of raising the ETH/USD quotes in the current trading week on October 18 — 22, 2021 will be a test of the trend line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the bullish channel. Cancellation of the growth option for the cryptocurrency value in the current trading week will be a fall and a breakdown of the level of 2845. This will indicate a breakdown of the support area and a continued fall in ETH/USD quotes with a potential target below the level of 2235. Confirmation of the rise in the Ethereum cryptocurrency will be a breakdown of the resistance area and closing of quotes above the level of 4355 , which will indicate a breakdown of the upper border of the ”Triangle” model.
Cryptocurrency Ethereum Forecast October 18 — 22, 2021 implies an attempt to test the support area near the level of 3055. Where can we expect a rebound and continued growth of the cryptocurrency to the area above the level of 4755. An additional signal in favor of the rise in the Ethereum rate will be a test of the trend line on the relative strength. Cancellation of the growth option will be a fall and a breakdown of the area of 2845. In this case, we should expect a continuation of the decline with a target below the area of 2235.
Ethereum Towers Above Axie Infinity and Altcoin Projects, Earning $777,000,000 in Revenue in Just One Month
Ethereum’s (ETH) protocol revenue is towering over play-to-earn game Axie Infinity and other altcoin projects.
Data from Token Terminal shows that the smart contract platform’s protocol revenue in the past 30 days reached $777 million, far surpassing those of Axie Infinity ($183.6 million), non-fungible token (NFT) marketplace OpenSea ($70.1 million), decentralized margin trading platform dYdX ($49.9 million) and digital payment system Filecoin ($16.7 million).
Ethereum’s big number comes after the blockchain launched its major upgrade in preparation for ETH 2.0. Crypto exchange Kraken says that more than $1 billion worth of ETH has already been burned since the London hard fork was activated in August.
ETH’s hash rate also hit an all-time high on September 21st with miner revenue surging to as much as $70 million in early September amid rising demand for NFTs and optimism over ETH’s future.
Despite placing at a far second, Axie Infinity’s native token AXS saw a spike in price following reports that its developer, Sky Mavis, is now valued at $3 billion. The platform is on track to bring in $1 billion in revenue from in-game transactions this year.