Ethereum Fees and the Number of ETH Tokens Burned are Increasing
Ethereum fees have risen by more than 70% since November 7. The total number of burned ETH tokens exceeded $4 billion at the current exchange rate.
According to BitInfoCharts, the maximum transaction fee spiked to almost $63 on November 11. Such figures were recorded for the first time since May 2021. The average cost of a transaction on November 12 is $55,75. The increased network load may be due to reaching an all-time high the day before, on November 10. On that day, ETH hit $4,87 thousand, according to CoinMarketCap.
The mechanism for charging transactions changed at the beginning of August, when the London upgrade came out. As a result, part of the fees that were supposed to go to miners is now being burned. In total, more than 843,700 ETH has been burned since then, which amounts to more than $4 billion at current exchange rates.
The largest number of tokens were burned from transactions on OpenSea and Uniswap V2, Ethereum internal transactions and transactions with the USDT stablecoin.
The hype surrounding Ethereum Name Service (ENS) is another possible reason for increased Ethereal Network fees. This is an Ethereum-based domain name service that launched its own token. On November 9, the free distribution of ENS tokens among users began. It is planned to distribute up to 25% of the entire ENS supply by May 4, 2022. As of 2 p.m. (GMT+2), the capitalization of the project exceeds $800 million, the value of the token fluctuates around $55, according to CoinMarketCap.