{"id":181441,"date":"2023-09-16T01:39:35","date_gmt":"2023-09-16T01:39:35","guid":{"rendered":"https:\/\/precoinnews.com\/?p=181441"},"modified":"2023-09-16T01:39:35","modified_gmt":"2023-09-16T01:39:35","slug":"ethereum-marks-one-year-of-pos-transition-1-5-billion-eth-burned-and-other-key-changes","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/altcoins\/ethereum-marks-one-year-of-pos-transition-1-5-billion-eth-burned-and-other-key-changes\/","title":{"rendered":"Ethereum Marks One Year of PoS Transition: $1.5 Billion ETH Burned and Other Key Changes"},"content":{"rendered":"
The Ethereum ($ETH) network has transitioned from a Proof-of-Work into a Proof-of-Stake consensus algorithm\u00a0one year ago, in a move that has helped the network\u2019s circulating supply start dropping and significantly reduced its environmental impact.<\/p>\n
Ethereum transactions started burning ETH after the London hard fork, which included the implementation of Ethereum Improvement Proposal (EIP) 1559.<\/p>\n
The EIP changed the way transaction fees on the network work. Instead of an auction system, users now pay a base fee for their transaction to be processed by validators, and can alternatively tip them to get their transactions to be processed faster.<\/p>\n
This has meant over 980,000 ETH tokens, worth over $1.5 billion, have already been burned, while 11.6 million ETH have been staked by over 360,000 validators.<\/p>\n
Ethereum staking has since the Merge been seen a source of revenue for both cryptocurrency holders and exchanges. These platforms offer users a staking service allowing them to maintain liquidity through a separate token while locking their ETH on-chain to earn rewards, and collect a potion of the rewards in exchange.<\/p>\n
Over the last 30 days, Ethereum\u2019s supply has been increasing at a yearly rate of 0.03%, up from around minus 0.003% seen last month, as fees paid on the network have dropped slightly. If Ethereum hadn\u2019t adopted its burning mechanism, its supply would have grown by 3.4% a year over the same period.<\/p>\n
Notably, as CryptoGlobe reported, cryptocurrency-focused arm of the renowned investment titan Fidelity Investments, which has over $4.5 trillion in assets under management, has recently suggested the second-largest digital asset by market capitalization Ethereum is trading at a discount.<\/p>\n
According to a new\u00a0report\u00a0titled \u201cEthereum Investment Thesis,\u201d Fidelity Digital Assets has noted that Ethereum\u2019s current circulating supply is around 120 million ETH and that the network\u2019s annualized fees surpass $6.8 billion, and calculated that the price of ETH should be around $2,090, applying a discounted cash flow model.<\/p>\n
The report comes at a time in which large Ethereum whales have\u00a0bought over $400 million worth of the second-largest digital asset\u00a0by market capitalization over just 24 hours as their accumulation of ETH is seemingly picking up steam.<\/p>\n
The accumulation comes at a time in which the cryptocurrency lost around 0.9% of its value over the course of 7 days amid a wider cryptocurrency market correction that has seen the space\u2019s market capitalization drop to near the $1 trillion mark.<\/p>\n