Since the transaction fee-burning upgrade, EIP-1559, went into effect on August 5, the Ethereum network has been on fire.
EIP-1559 burns ETH used to pay for Ethereum network transactions such as trading a currency on a decentralized exchange or sending an NFT.
EIP-1559 was one of five improvements issued on August 5 as part of Ethereum’s London hard fork.
The Ethereum network did not burn tokens before EIP-1559; many Ethereum-based tokens, such as Shiba Inu, burn tokens as part of their monetary policy.
Instead, the gas costs were distributed to Ethereum miners, a decentralized network of powerful computers that keep the network running. However, unless users “tip” miners, miners will no longer get those fees, which will be burnt instead.
More complex transactions have greater transaction costs. For example, on NFT markets, transferring tokens costs around $8.80.
OpenSea, the largest NFT marketplace, is also the greatest gas spender, accounting for 8,750 ETH ($28.4 million) since EIP-1559. Trading volumes on OpenSea have increased after a CryptoPunks trading frenzy began on July 31.