40k ETH Burned and Increased Rates Among the First Responses of Ethereum to EIP-1559

After the launch of EIP-1559 – the Ethereum update on Thursday, the impact on the network and the coin itself were almost instantaneous.  

Since the Ethereum update launch, from nearly absent 3 Gwei fees to staggering 520 Gwei gas costs in a single transaction, events have moved rather quickly.

Etherscan (ERC) was one of the first services to experience the effects of EIP 1559 after the launch. By 1:30 p.m. UTC, the lowest cost of an Ethereum (ETH) transaction was 3 Gwei, while ERC tokens were not affected by the fee reduction.

Alas, prices of Ethereum gas fees hit the roof to 300 Gwei for a single transaction due to the withdrawal and deposit of ERC and ETH coins. Furthermore, with 663 Ethereum (ETH) expended, COVIDPunks NFT gas project costs have been classified as the first in the network.

The fluctuations in Gwei fees were vast where the Ethereum (ETH) gas fee retreated to 40 Gwei (average fee price pre-update) from an uproar of 532 Gwei post update. Depending on the rates paid for the transaction, the average transaction period ranged from 10 minutes to the coin’s average of 60 seconds. Others ranking highest in this category with 800 burned Ethereum (ETH) combined are Uniswap V2 and OpenSea NFT. 

The prices were not directly affected by EIP-1559 because the initial purpose of the update was not to change prices but to lower the volatility of transaction prices. However, a 650% price upsurge does not exactly mean non-volatility. Likely, the severe price upsurges were as a result of a high flux of transactions immediately after the update went live because 47 Gwei was the remaining gas price for 1,000 blocks which amounts to the usual fees in the network.

Around 40,000 Ethereum (ETH) were burned only a few hours after the launch of the update.

Also read: Ethereum London Upgrade Launched