70,000 ETH Burned as NFTs pick up pace
It's been less than three weeks since EIP-1559 London Fork Ethereum was launched and today the official amount of Ethereum staked in the contract has breached 7 Million Ethereum. This consists of 42 Unique stakers and 221 thousand validators. Source
A breakdown of where the Ethereum has come from and who is staking it as available in the source above. Noting a majority of Ethereum is unknown but Lido finance takes top spot for pooled Ethereum stakes.
How much Ethereum has been burned?
For the less than three week period of staking an astronomical amount of 70,000 Ethereum has been removed from circulation and in today's price that's around $US221 Million dollars Source.
The good news is that Ethereum Staking has already brought down transaction fees. It does so by instead of requiring users to pay fees stakers receive a portion of newly minted Ethereum for approving transactions.
The current fees in Gwei are as below (estimates only):
Basic Transaction
32 GWEI = $USD2.10
Complicated Transactions
120 GWEI* = $USD8.80
DEX Transaction
320 GWEI* = $USD20.20
The fees are due to the network currently hosting both miners and stakers. Which once completed miners will be removed from the network completely and replaced with Proof Of Stake. Ethereum is providing miners the opportunity to pivot from mining to stakers. It is yet to be seen if any will be left behind. Due to the collection of fees miners have sufficient time to accumulate enough Ethereum to transition to the PoS network.
Full Roll Out Wen?
The full Ethereum 2.0 Hard Fork is rumoured to be finalised by the end of 2021 and warnings have been issued to miners to transition to the new network with it fully implemented in early 2022.
It is also rumoured that unstaking Ethereum will also be enabled in Q1 - Q2 of 2022. That will be the proving point of Ethereum and if validators will commence dumping their now pumped up token.
Where are the Ethereum transactions happening most?
Opensea has led the charge of Ethereum transactions due to the Cryptopunks trades which mooned in July. The transactions exceeded 8,000 Ethereum and over $USD 22 Million dollars. Source
The second largest for Ethereum Transactions is the Decentralised Finance Exchange Uniswap which accounted for over 5,000 Ethereum more than $USD16 Million dollars in transactions.
So as you can see the London Hard Fork has greatly benefited Ethereum by providing fast, secure and cheap transactions away from the high fee, congested network prior.
As Ethereum continues to charge forward towards the end of 2021 its looking like a bright future for the network in 2022. It's still anyone's guess if validators will remain in the network or look to make some quick profits off their recent price growth.
Image sources provided and supplemented with Canva Pro Subscription.
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Ethereum 2.0 seems already exciting! Hopefully the timeline is met, but understandably, there’s no rush, or maybe there is.
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It is definitely an interesting development, we're either seeing the flippening unfold or a peak dip next year.
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https://twitter.com/taskmaster4450/status/1429607929787916295
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I don’t know much about it but do regular people get benefits from staking Ethereum? I have some and I wouldn’t mind staking it to earn some interest but most things on that chain confuse me so I just keep my Eth in my hardware wallet so I don’t mess it up lol
Unless you have the full 32 Ethereum required to operate a validator you're better off joining Lido, Kraken or Binance as they do pooled staking.
I think you're also able to remove liquidity, but you will need to make sure because at current staking is only one way on Ethereum. You get paid for staking, the amounts vary depending on the amount you Stake and how many people in the pool.
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Ah ok thanks man. Not my scene that's for sure! Got decent Ethereum and I'll just let it sit for a while lol
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STOPTo support your work, I also upvoted your post!
It's kind of weird to see NFTs being the number one source of transaction but I think its probably true due to the explosion of people wanting in on Axie and other stuff. Though I would think Defi would be number 1
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Gaming is a Billion dollar industry so I think once this took hold it was always going to sky-rocket. Especially with e-sports being underfunded due to governments not investing in it.
Traditional games like Grid Iron, football etc get all the funds. So the gaming sector has been dormant waiting for an industry. Gaming is also accessible to alot more people than traditional sports.
In regards to Defi, I think it's run its course. So many are created these days that they just pump and dump.
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The Ethereum network keeps getting better but I still see the expensive fees as a problem. Anyway I think they are on the right track.
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Yes definitely looking like the up. Great stuff in the works and won't be long until Ethereum flips Bitcoin.
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Thank you for all these information.
I wonder why dex transactions have such high fees compared to complicated ones ?
Is that because users are willing to put more gas per trx to get their order through?
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Ethereum transaction is high.The Best way to get Ethereum is by staking it. Staking is the best way to multiple your Ethereum.
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Just imagine if we repeat what we did a few months ago with NFTs and how much Ethereums blockchain gets used the burn will be HUGE. The updates so far do not fix fees they simply implement more/burn now. Going to be a few more months till we see an update that actually does something to improve fees.
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Yes I agree but as an Australian my fees were $80 - $120 at one stage. I was like fark that on a few occasions.
lol, I get that I think I paid something like $75 to mint a NFT on openseas during the craze
Has the NFT been sold now?
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Clearly, it is being seen that the ETHEREUM is going for deflationary assets and is being safe investment heaven. The original idea of Etheruem being a decentralized computing network on the internet is diminishing.
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I can see ethereum now wanting to compete in a market saturated with cheap blockchain transactions.
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Yup, cost is a big part of why people don't join a project. Transaction fees that are too high will make people move to the next one.
That’s a lot of ETH.
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Yup and it will only continue to grow