Ethereum worth 40 million U.S. dollars was destroyed and surpassed Bitcoin in three days?

Hello, everyone, I’m Pepe. It can be said that the current market situation is quite in line with our prediction last week. One is that we have seen the rise since late July continue this week, and the other is the Eip1559 update. And the addition of the destruction mechanism has indeed driven growth and partial fomo sentiment, and has also had a positive impact on the alt market. Many altcoins have increased by 30-40 points this week.

Let’s take a look at the current situation of the destruction of Ether. Since the 1559 proposal is updated to the main network, the basic fee in the gas fee will be burned, that is, a certain amount of ETH will be destroyed in each block.

This can be used as a collection and observation data website:

Ethereum worth 40 million U.S. dollars was destroyed and surpassed Bitcoin in three days?

This is the state intercepted at 6 pm on the 8th. At present, more than 13,000 eth have been destroyed in almost three days, worth about 40 million U.S. dollars. From the block records, it can be seen that the single block destruction is usually at 0.7- 0.8eth, at this rate, it is expected that the annual destruction may reach 1 million to 2 million eth, which is quite considerable.

The amount of destruction depends on the amount of transfer transactions on the chain. The more active the chain, the more transfer fees, and the more they are destroyed. Therefore, this change in mechanism also means that the eth coin is between the Ethereum community and the ecology. There has been a deeper bond, and the current overall market is not actually a feverish period. With such a state, it should be said that it is still optimistic about the future.

In addition, we can also extract some information points through ultrasound. One is a dynamic estimate of the supply of Ethereum at the bottom of the page:

Ethereum worth 40 million U.S. dollars was destroyed and surpassed Bitcoin in three days?

Click the mouse to see the total circulation of eth every day, as well as how many are in the account address, how many are in the contract, and how much is pledged in eth2.0.

There is also an estimate for future supply and destruction. As shown in the figure above, when the gas fee is set at 20Gwei by default, almost 2000 eth is destroyed every day. After POW transitions to POS in 2022 (estimated time), If the block reward part is removed, there may be a deflationary state, and if the gas consumption reaches 100 or more, the deflation will be more obvious.

So from this perspective, if combustion is to really work, it may depend on the transfer to POS. The current short-term is more FOMO enthusiasm, and whether it can be maintained is a question mark.

Another area to pay attention to is the destruction ranking, through which we can understand which applications are the hottest in the ether ecosystem today:

Ethereum worth 40 million U.S. dollars was destroyed and surpassed Bitcoin in three days?

At present, the transaction fee is a big consumer. You can see that there are mainly several areas. One is NFT. Opensea has burned more than 1,500 eth in transaction fees in the past few days, ranking first. The transaction volume of the game Axie is still hot, and the other is DEX. -Uniswap, then stablecoin.

In addition, some short-term hot spots can be seen from time to time in this ranking, from which we can find popular gameplay in the ecological community (of course some of them may be local dog projects), such as the covidpunks in the above picture, which is also a recent wave. The craze of cryptopunks, released 10,000 cryptopunk NFTs wearing masks on the chain two days ago for players to claim:

Ethereum worth 40 million U.S. dollars was destroyed and surpassed Bitcoin in three days?

This NFT also has some silly designs. For example, the blue background is healthy, the red background means it is infected with the virus, etc., because the total output is only 10,000, it once caused the players to be wildly robbed, which caused the gas fee to be instantaneous. Soaring, most users spent hundreds to thousands of dollars in gas costs to successfully apply.

Ethereum worth 40 million U.S. dollars was destroyed and surpassed Bitcoin in three days?

However, many people not only failed the transfer, but also lost hundreds of dollars in gas costs. It seems that this risk is still great. The current transaction price of a covidpunks in Opensea is between 0.06-0.12 eth.

In addition, there is also a similar NFT project called CryptoZunks today, so the main game of NFT on the ether is to issue limited editions for users to apply for, and users can profit by selling more than cost. This has also driven the recent opensea Transaction volume.

Of course, not every NFT is cryptopunks. More follow hotspots may require more gameplay to bless. For example, covidpunks wrote in the project roadmap that there may be some airdrops to the address holding his NFT in the later period. Or sweepstakes.

Although these feelings are a bit unacceptable, but at present, the popularity of NFT still occupies a large share in the market.

The above is about some situations in the eth ecology. Those who are interested can always pay attention to the gas consumption data to discover some new projects and gameplay.

As for whether the market value of eth can surpass Bitcoin? I think this is also what many kols at home and abroad are talking about recently, and many emotions are biased towards the ether. I am not too biased, so I am a little bit indifferent to whether I can surpass this issue. Let’s talk about the two aspects currently in mind. :

First, from a temporary point of view, the big pie will be more mainstream, and will be more concerned by institutional leaders. Like the B world we mentioned before, the ether is slightly weaker in this respect, but the influence of the ether in the crypto community , And application innovation will be more dominant. In other words, apart from their different characteristics, the audiences behind the two are somewhat different. Whoever has a higher market value may depend on the organization in the future. Bigger or community-driven energy will be greater (Note: I think the audience difference refers to the focus. The fact that the pie is more concerned by institutions does not mean that no institution pays attention to Ethereum, nor does it mean that retail investors do not hold the pie).

Another advantage of Ethereum is the network effect. Various game modes are emerging one after another. Coupled with the binding of ecology and gas consumption, the prosperity of the application will promote its value.

But in the short term, in fact, the prosperity of crypto depends on ROI and speculation, but now I feel that the money-making effect in ether applications seems to be weakened. The model of NFT snapping up above feels a bit difficult to sustain in the face of gas costs. So in the short term, if the market value exceeds, does it feel that there is still a lack of ecological or fundamental support?

Concluding remarks

Looking at the chain ecology and the NFT market, there is a little lack of sustainable money-making effects. This is a point where I am a bit hesitant about whether the overall downtrend is currently going out, and I remain cautiously optimistic.


Posted by:CoinYuppie,Reprinted with attribution to:
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