Crypto Hotshots 2022 🔥♨️

Twitter Instagram Facebook Facebook Linkedin Youtube Spotify Medium Reddit Telegram
Voice of Crypto
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
    • Sponsored
    • Global Crypto Events
  • Services
    • Content Marketing Services
    • Crypto Influencer Marketing
    • Advertise With Us
  • Know Us
    • About Us
    • VOC Team
    • VOC Vigilantes
    • Brands Who Trust Us
    • Contact Us
Reading: Here’s how Ethereum Scarcity Can Increase After The Merge
Share
  • bitcoinBitcoin(BTC)$28,461.00
  • ethereumEthereum(ETH)$1,829.30
  • tetherTether(USDT)$1.00
  • binancecoinBNB(BNB)$314.93
  • usd-coinUSD Coin(USDC)$1.00
  • rippleXRP(XRP)$0.51
  • cardanoCardano(ADA)$0.391321
  • staked-etherLido Staked Ether(STETH)$1,822.97
  • dogecoinDogecoin(DOGE)$0.076936
  • matic-networkPolygon(MATIC)$1.11
  • Events
  • Videos
  • Podcast
Voice of CryptoVoice of Crypto
Aa
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
  • Services
  • Know Us
Search
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
    • Sponsored
    • Global Crypto Events
  • Services
    • Content Marketing Services
    • Crypto Influencer Marketing
    • Advertise With Us
  • Know Us
    • About Us
    • VOC Team
    • VOC Vigilantes
    • Brands Who Trust Us
    • Contact Us
Follow US
Copyright © 2023 Voice of Crypto. All Rights Reserved
Voice of Crypto > News > Here’s how Ethereum Scarcity Can Increase After The Merge
News

Here’s how Ethereum Scarcity Can Increase After The Merge

Jim Haastrup
Last updated: 2023/03/14 at 12:44 PM
Jim Haastrup Published May 26, 2022 March 14, 2023
Share
VOC, Voice of Crypto, Ethereum

The Ethereum blockchain is burning through millions of dollars worth of crypto in record time. Around 2.35 million Ether (worth $8.10 billion) has been burned since the implementation of the Ethereum Improvement Proposal (EIP) 1559. The last seven days have seen 18,110 ether worth $34.9 million destroyed – a sign that there would be scarcity.

Contents
Dev Says Merging Could Happen In AugustCan Ethereum Price Rise?

Dev Says Merging Could Happen In August

288 days ago, Ethereum developers implemented a rule change that will forever alter how transactions are executed on their network. The EIP 1559 evolved the algorithm for gas prices and now burns base fees per transaction!

The London upgrade of EIP 1559, which was codified into the codebase on August 5, 2021, and live since then has 2.35 million ether worth $8 billion in USD value destroyed forever so far!

The day after the implementation of EIP 1559, Vitalik Buterin explained that the change brought about by EIP 1559 was “definitely the most important part” in regards to London’s upgrades.

Last 24 hours, a whopping $4.63 million worth of ether has been burned! On May 1, the network saw a record-breaking daily burn rate with 71,718 ether worth $138.78 million. On January 10, 2022, the second highest burn rate daily record was set when 19,424 Ethereum worth roughly $37.5 million was destroyed that day.

The most significant Ethereum burner today is Opensea as they’ve burned 229,925 ether over 14,639,327 transactions. Gas used for the transfer of this cryptocurrency has burned 207,072 ETH and with Uniswap V2, only 131,457 ETH was destroyed in the process.

The next significant shift will be when The Merge is applied. With this update, Ethereum will switch from its current consensus algorithm, which utilizes proof-of-work (PoW), to a more energy-efficient one called proof-of-stake (POS). This change has many benefits, including reduced transaction fees and faster confirmation times!

It seems that Ethereum’s believers are getting ready for The Merge as some of its key players suspect this change will be codified at some point in summer. Just recently, Consensys launched an early access version of “Bonsai Tries” which aims to be several steps ahead in the merge transition.

Furthermore, at the recent Permissionless conference, it was announced that Ethereum developer Preston Van Loon believes we may see The merge implemented as soon as August. Ethereum developer Tim Beiko recently predicted that the Merge will likely go live by the third quarter of 2022. He further explained why he “strongly suggests” miners do not invest in more mining rigs going forward, explaining it is too soon for them and their investments may never pay off!

With the looming threat of Proof-of-Work’s scaling crunch, Ethereum’s mining hashrate has been at an all time high recently. On May 13 a block height of 14,770,231 was mined!

Despite the upcoming changes, Ethereum’s PoW hashrate was at the highest point in the network’s lifetime on May 13, at block height of 14,770,231.

Can Ethereum Price Rise?

The idea of burning Ethereum is not new. Many crypto enthusiasts believe that this will give ETH its ultra-sound money feature, where there’s a deflationary mechanism in place for when prices drop due to too many coins being issued by developers who want their currency appreciated at a rate higher than inflation rates would allow them so far.

With the merge, Ethereum’s supply is set to decrease drastically. Currently at 5 million Ether per year in issuance rates, after the transition, there will only be around 500,000 ether issued annually which could cause prices to increase due to its scarcity.

The merger is set to bring an end to the annual supply growth of 3.7%. After The merge, it’s expected that there will be roughly a 0.4% yearly supply growth.

Despite all these, Ethereum’s burn rate will be around the same, which means that 900,000 ether is expected to disappear each year. However significant spikes like May 1st’s 71,718 ether burned can change estimations significantly.

You Might Also Like

Why Elon Musk Called for a Pause on AI Development

10 Top Crypto Airdrops for April 2023

SEC Head Gensler Seeks $2.4B to Fight Crypto Corruption

MetaMask Issues Warning on Fake Airdrop Rumors

Bitcoin, Ethereum Price Analysis: Bulls or Bears, Who Wins?

TAGGED: Blockchain, DeFi, Ethereum
Share this Article
Facebook Twitter Email Copy Link Print
Previous Article VOC, Voice of Crypto, LUNA Crypto Exchanges Show Initial Support For Terra’s LUNA Revival Plan
Next Article Indian Fashion Designer Scammed Spam Indian Fashion Designer Scammed of Rs 1.1 lakh via Cryptocurrency
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Binance

Follow US

Find US on Socials
Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Subscribe to our Newsletter

Get Newest Articles Instantly!

Ledger
Popular News
Web3 Shorthand
Web3 Shorthand: A Glossary for Crypto Newbies
Elon Musk AI Crypto
Why Elon Musk Called for a Pause on AI Development
Quick-Tips-To-Avoiding-A-Fake-Crypto-Wallet
Quick Tips To Avoiding A Fake Crypto Wallet

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Twitter Instagram Facebook Facebook Linkedin Youtube Spotify Medium Reddit Telegram
Voice of Crypto

Voice Of Crypto hits a beat with almost 15 million users, churning out the best news and content in the Web3, crypto and blockchain space

Subscribe to our newsletter

You can be the first to find out the latest news and tips about trading, markets...

  • Advertise With Us
  • About Us
  • Privacy Policy

Copyright © 2023 Voice of Crypto. All Rights Reserved

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?