Ethereum Dencun Upgrade: Over 50,000 ETH Burned and More
The Ethereum Dencun upgrade is fast approaching, bringing with it notable developments in the Ethereum ecosystem. Here’s what you need to know:
Over 50,000 ETH Burned
Since the implementation of the EIP-1559 upgrade, the amount of ETH burned has been steadily increasing. This burn occurs when fees are paid on the Ethereum blockchain. Recently, the amount of ETH burned surpassed a significant milestone:
- According to Ultrasound Money, a website dedicated to tracking Ethereum performance since EIP-1559, over 1.5 million ETH has been burned.
- At the time of writing, the exact figure stands at 1,502,518.84 ETH.
- This amount is equivalent to over $5.6 billion based on current prices.
In addition to this milestone, it’s worth noting that the number of burned ETH now exceeds the number of newly issued ETH. This means that the Ethereum network has become deflationary:
- While 1,502,518.84 ETH has been burned, only 1,089,809.20 ETH has been issued during the same period.
- As a result, the overall supply of ETH has not increased.
- The supply of Ethereum has decreased from 120,521,245 ETH to 120,108,332 ETH since the upgrade in 2022.
- This reduction in supply amounts to 412,706 ETH, worth approximately $1.55 billion.
Ethereum Dencun Upgrade Looms On The Horizon
The Ethereum Dencun upgrade is the latest in a series of upgrades aimed at improving the Ethereum network. This upcoming upgrade is expected to bring several improvements, including enhanced efficiency and capacity:
- The Dencun upgrade was recently launched on all testnets, marking the final phase before the official launch.
- The official launch is scheduled to take place on March 13.
- Once completed, the upgrade is expected to increase block space and enhance overall network performance.
In anticipation of the upgrade, the price of ETH has been performing well:
- ETH recently reached $3,900 for the first time since 2022.
- Although there has been a slight retracement, the altcoin remains above $3,700 at the time of writing.
Hot Take: Ethereum Dencun Upgrade Brings Positive Developments
As the Ethereum Dencun upgrade approaches, there are several positive developments to note:
Increased ETH Burning
The burn mechanism introduced with the EIP-1559 upgrade has led to a significant amount of ETH being burned. This deflationary effect has resulted in a reduction in the overall supply of Ethereum.
Anticipation for Enhanced Network Performance
With the Dencun upgrade set to launch soon, there is growing anticipation for improvements in Ethereum’s efficiency and capacity. These enhancements are expected to have a positive impact on the network’s performance.
Positive Price Performance
The price of ETH has been on an upward trend leading up to the upgrade, reaching new two-year highs. While there has been some retracement, the overall price performance has been positive.
Overall, the Ethereum Dencun upgrade brings promising developments for the Ethereum network and its native cryptocurrency, ETH. As the upgrade launches and progresses, it will be interesting to see how these developments unfold and their impact on the crypto market.
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