The Ethereum Dencun upgrade is fast approaching and there has already been notable development for it. In addition to the ETH price rising to a two-year high, the amount of ETH burned so far has also increased significantly.
Over 50,000 ETH burned
Ethereum burns that occurred with the EIP-1559 upgrade have been rapidly increasing over the past year. ETH, consumed by blockchain fees, quickly surpassed $100 million and has now reached a new milestone.
Since EIP-1559 was implemented, more than 1.5 million ETH have now been burned, according to Ultrasound Money, a website dedicated to tracking Ethereum performance. A more accurate figure is 1,502,518.84 ETH at the time of this writing, which is over $5.6 billion at current prices.
The amount of ETH burned also greatly exceeded the amount of ETH issued. This means that the network has entered a state of deflation. Compared to the 1,502,518.84 ETH burned, only 1,089,809.20 ETH was issued during the same period. This shows that supply has not increased despite new issuance, and ETH already in circulation is also being burned.
At the time of the 2022 upgrade, the total supply of Ethereum was 120,521,245. However, since then burns have slowly eroded this figure and currently sit at 120,108,332 ETH. This means that since 2022, ETH supply has decreased by 412,706 ETH, or $1.55 billion.
Ethereum Dencun Upgrade Is Coming Soon
The Ethereum Dencun upgrade is the latest in a series of upgrades in an effort to create a better network. The upgrade is expected to bring several improvements to the network, including increased efficiency and capacity.
It launched on all testnets last week and is expected to be the final step before launch. The launch itself is scheduled to take place on March 13th, less than a week from now. Once completed, block space is also expected to increase.
Currently, ETH price is performing quite well ahead of the upgrade. It recently reached $3,900 for the first time since 2022, and although there has been some retracement, the altcoin continues to trend higher above $3,700 as of this writing.
ETH price moves toward $3,800 | Source: ETHUSD on Tradingview.com
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