Ethereum Reaches $5 Billion Burned Coin Mark Second Time in Year, Here's How
While the Ethereum network remains relatively calm compared to high congestion periods, it still manages to burn more than $25 million worth of Ethereum by the day, according to WatchTheBurn service.
Getting closer to record-breaking burn value
Currently, the burned coin value remains at $4.95 billion, which means even a slight price increase for Ethereum would put the number over the $5 billion mark. The daily net issuance for the second-largest cryptocurrency on the market currently remains at $29 million.
Net issuance reduction remains at 66%, which means that approximately 36% of the planned circulation issuance was burned and did not reach the market. With a significant decrease in selling pressure, Ethereum was able to move higher with less resistance in the future.
Current emission rate increases
Unfortunately for Ethereum burn enthusiasts, the emission rate of the coin has increased by more than 50% compared to the NFT era, when a relatively small project was able to cause strong network congestion.
With network congestion aggravating, the transaction fee increases sometimes by hundreds of percent. During the DeFi craze, users had to pay up to $100 dollars to move even a slight amount of Ethereum.
While the high fee rate did not act in favor of the network's usability, miners and long-term holders enjoyed increased buying activity and high tips that users have to send to miners to push their transactions through faster. High base fees were also the source of the low Ethereum emission that previously remained at approximately two ETH per minute, while now the coin is being issued at a rate of six ETH per minute.
At press time, the second-biggest cryptocurrency on the market trades at $4,018, showing a 7.2% price increase in the last two days. The growth was most likely caused by the overall cryptocurrency market recovery that has put numerous coins in the "green" zone.
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