More than 1 million Ether (ETH) ($4.45 billion) has been burned since the introduction of the EIP-1559 protocol in August.
The EIP-1559 protocol reshaped the Ethereum fee mechanism. With this protocol, the gas fees limit was changed and a burn feature was introduced, which removes some of the transaction fees on the blockchain from circulation, permanently canceling it.
Due to the increasing demand in NFT platforms and the decentralized finance industry (DeFi), the amount of ETH burned has increased considerably.
In addition, ETH is burned during transfers in stablecoins such as Tether (USDT) and USD Coin (USDC) built on the Ethereum blockchain.
According to the current data of Ultra Sound Money, every 5 minutes about 40 and about every day 11,700 ETH is being burned. At current rates, around 4 million ETH is burned each year.
These burns generally have a positive effect on the market as they reduce the amount of ETH circulating in the market and inflation. About % during the past week6.5 ETH, which gained value, is trading at $ 4450 according to CoinMarketCap data at the time of writing this article.