Redditor u/JustdownintheMines was quick to notice the burning milestone, pointing out that approximately 1.2m ETH has been burned until now. This is 1% of the total Ethereum supply - worth some $4.8bn. ETH currently has a circulating supply of 118,801,770.
The new EIP-1559 upgrade implemented in August aims at improving the use cases of Ethereum blockchain by burning Ether coins at a rate that may soon let the crypto project a bullish outlook on leading financial indexes.
London Hard Fork Sees Ethereum Burning
While 1% of ETH's supply has been burned, this is unlike the SHIB burning or BNB burning in that it is not reducing the overall supply of ETH. This is because each new block mined, also rewards two ETH. Indeed, as the Redditor stated:
Ethereum is not necessarily deflationary, but rather contains a deflationary measure.
Regardless, Redditors were still surprised at the rate at which ETH is burning. "Seriously fast. Did you expect it to be so soon?" one Redditor said. "I didn't think we'd hit 1% for a few more months."
The Redditor also noted that if the burning rate remains consistent, it will result in burning 3% of the total ETH supply by 2022.
The London hard fork bridge update is one of the latest Ethereum's updates (EIP-1559). A hard fork primarily refers to a permanent unchangeable modification on a blockchain.
One of the key features of this update is its automated transaction fee that changes as per the current demand. The update was implemented to keep the transaction fees of Ethereum in check and bring consistency to the fees.
It was only in August that reports said 1 million ETH had been burned since the EIP-1559 upgrade.