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The largest amount of ETH was destroyed as a result of transactions on the OpenSea NFT marketplace, transfers in the altcoin network and operations on the Uniswap V2 crypto exchange
The value of destroyed digital coins in the Ethereum network exceeded $5 billion (1.53 million ETH), according to the ultrasound.money service. The process of burning the altcoin began on August 5 after the release of the London update, which changed the mechanism for calculating transaction fees. Part of the commissions that miners previously received as a reward is now burned.
Most Ethereum has been destroyed since August 5 as a result of:
- Transactions on the NFT marketplace OpenSea — 175.2 thousand ETH;
- Transfers in the Ethereum network – 148.9 thousand ETH;
- Operations on the Uniswap V2 crypto exchange – 117.6 thousand ETH;
- Transactions with stablecoin USDT — 72.5 thousand ETH.
Burning is the destruction of part of the tokens to reduce their number in circulation. This method is used to fight inflation and increase the value of the cryptocurrency. All coin burning operations are recorded on the blockchain as a transaction, so anyone can verify that the coins have been destroyed.
On January 17, Ethereum is trading at $3.2 thousand. Over the month, the altcoin has fallen in price by 16%, and its capitalization has decreased to $387 billion, according to CoinGecko. In early November last year, the cryptocurrency updated its all-time high above $4.8 thousand. Since then, the price of the altcoin has fallen by 34%.
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