Thursday, June 17, 2021

Ethereum Developer: Transaction Fees Hit Record Daily High of $89M in ETH, EIP-1559 would have burned $62M

Ethereum community members, except some aggrieved miners, are anticipating the implementation of the Ethereum Improvement Proposal (EIP) 1559, due to the major benefit it’ll bring to the network.

The implementation of EIP-1559 promises a drastic reduction in transaction fees, which is the major challenge ravaging the network of the leading smart contracts platform, Ethereum.

Read Also: Ryan Watkins of Messari: Ethereum Would Replace Bitcoin As Go-to Asset after ETH 2.0 Is Rolled Out

Ethereum (ETH) Records Highest Daily Transaction Fees

Some hours ago, Ryan Berckmans, an Ethereum developer, hinted at the benefit Ethereum holders should have been leveraging if EIP-1559 has been rolled out.

According to Berckmans in a tweet that attracted hundreds of reactions, the Ethereum network recorded its highest ever daily transaction fees of $89 million in ETH yesterday.

The Ethereum developer added that the upcoming EIP-1559 is expected to burn approximately 70% of transactions, which would have burned relatively $62 million in ETH of the exorbitant fees recorded yesterday.

Read Also: Fundstrat Global Reiterates Its $10,500 Price Target For Ethereum (ETH)

Berckmans’ tweet implies that the much-awaited EIP-1559 scheduled to go live along with London Hard Fork in July is a big deal for the Ethereum ecosystem.

Ryan Berckmans tweeted, “Yesterday, ethereum did $89M in transaction fees, the most ever in one day. That’s an annual run rate of $32.5B in fees. EIP-1559 is estimated to burn ~70% of fees and would have burned $62M in ETH yesterday. EIP-1559 launches in a little over two months.”

Read Also: Developer Highlights How BSC Helps Ethereum Rather Than Being a Threat as Berlin Upgrade Goes Live

How EIP-1559 Impacts Ethereum Network

In a tweet in late March, Ryan Berckmans, summarized how the implementation of EIP-1559 will transform the Ethereum network for the benefit of its teeming users.

Ryan Berckmans tweeted, “With EIP-1559, each transaction no longer picks a gas price. Instead, each transaction picks two new numbers, the “fee cap” and “tip”. Here’s a concept for how a wallet might auto-calc the fee cap and tip, and then show the user a fee choice of Slow, Average, or Fast, like today.”

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Solomon Odunayo
Solomon has a growing passion for writing, this propelled him to keenly work on Eagles News Media for about two years before delving into the cryptocurrency and Blockchain industry he finds more interesting. He worked as a crypto Journalist and Editor at NewsLogical before joining Herald Sheets, owing to the priceless experience he has accumulated since he became a contributor in the crypto community.

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