Ethereum 2.0 Altair Beacon Chain upgrade had a booming start, updating 98.7% of the nodes. This marked a vital step in the direction of the Merge, the switch to a proof-of-stake consensus mechanism.
Ethereum also underwent essential upgrades, like the London hard fork. This upgrade integrated a deflationary burning mechanism as part of the network’s fee structure.
Jumping to the present, Ethereum and its burning mechanism have improved after the recent update. For example, every minute in the last 24 hours, 10.06 ETH worth $42,895 burned. All in all, the burning mechanism torched about 701,630 ETH worth $3 billion at the time of writing.
Other comparable platforms have shown similar results. For instance, the Non-fungible token (NFT) industry OpenSea is accountable for torching the most ETH, burning 91,172 ETH worth about $398 million.
The decentralized exchange (DEX) Uniswap (variation 2) with an overall of 51,331 ETH worth over $230 million falls in this group. Ergo, NFT and DeFi are presently two primary use cases of Ethereum.
The amount discussed above totals billions of dollars. As an example, Chinese reporter Wu Blockchain tweeted the following:
According to oklink, the amount of ETH burned on October 31st reached 697,591, which is more than 3 billion U.S. dollars, and is currently 3.051b.
— Wu Blockchain (@WuBlockchain) October 31, 2021
The report highlighted important attributes about the largest token. It noted,
“Ethereum’s current burn rate is around 5 ETH/min, and the average burning value of a single block remains above 1.1 ETH. The annual new supply of Ethereum is 5 million, which means that at the current burn rate, more than 50% of the new supply burned. If ETH1.0 and ETH2.0 are successfully merged, Ethereum may move toward deflation.”
In addition to the points discussed above, institutional adoption has been a critical reason for Ethereum’s current success.
Consider this, 12 Ethereum securities products held 1.4294 million ETH, worth more than $5 billion, accounting for 1.23% of the Ethereum market cap. CoinShares Ether Tracker Euro, an Ethereum safeties product under CoinShares, held almost 380,000 ETH, ranking first in the Ethereum safeties products.
Furthermore, pro-ETH analysts remain optimistic regardless of downturns. Now or in the past.
Wilson is a successful crypto analyst and content writer with many years of writing experience in finance and blockchain fields. His interests are in crypto-asset research and technical analysis, Fintech, Blockchain, DeFi, NFTs, and Personal Finance.