Unlike Bitcoin, Ethereum is not limited in nature, and this was a problem for the currency. But after the latest fork was added to the network, this has been solved more or less. The EIP 1559 upgrade has allowed the network to burn tokens in every transaction, which reduces the amount in circulation. This is a big deal as the lower the number of tokens higher their value will be. In fact, over $100 million in ETH was burned in the last week after the upgrade. This amounts to nearly 32,000 Ethereum tokens.
Ethereum’s growth potential
Ethereum was already increasing in value at a fast pace, but the latest upgrade has sped things up to a different level. People are excited about the same, and the growth in the number of tokens of ETH has slowed down drastically. The best part is that the fees enjoyed by the miners are not affected as such. So, even they are happy about the upgrade. Another big benefit of this is the presence of a more predictable fees system.
A perfect example of the burning of Ethereum tokens was presented on Twitter. A person said that just consider that every time Apple sold an iPhone, it bought back its own share; how powerful would that be. Ethereum latest burning after the upgrade is similar to that. The pace at which the number of tokens will be released in the market will be very less, and in fact, it is now in line with Bitcoin’s mining. So, the network will continue to grow, and Ethereum’s value will continue to increase but in a much controlled manner.
Ethereum’s price action
Ethereum has breached the $3,100 mark again after consolidating yesterday. The price has been stuck at this level for a few days now and is unable to break above due to Bitcoin. It will be important for BTC to break above $47k in order for Ethereum to continue its upward movement. Do note that BTC faces strong resistance at various positions until $50k, so the movement won’t be that easy, and bulls have a hell lot to do.
What are your thoughts on the $100 million ETH burned in just 7 days? And do you think that this latest upgrade will be a game-changer for Ethereum? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.