Data Source: Footprint Analytics
according toFootprint AnalyticsThe data is as of February 7th,EthereumEthereumPolygonSince the London upgrade in August, 1,778,834 ETH have been burned, equivalent to $5.5 billion at current prices.
It is also announced that EIP-1559 will be implemented on the mainnet at 3:00 UTC on January 18th.
EIP-1559 mainly converts the billing mechanism of the first-price auction into a basic fee plus a priority fee. Base fees fluctuate based on network conditions, making gas fees more predictable while burning base fees.
Among the gas fees paid by users, the basic fee will be locked in the destruction contract, and the priority fee will be paid directly to the verifier. The burn will start on Polygon and finish on Ethereum. Polygon provides a front-end to allow users to view the burning situation, and users can start burning once the accumulated MATIC to be burned exceeds 25,000. Polygon has burned 540,000 MATIC so far.
antecedent
Polygon is a side chain of Ethereum, which aims to solve the problem of Ethereum expansion. The purpose is to solve the problems of high fees, low transaction per second (TPS) and poor experience faced by Ethereum.
However, in early January, Polygon also encountered a gas fee crisis, which even caused some validators to fail to submit blocks. Due to an NFT game called Sunflower on the chain, the gas fee has surged, and 40% of the gas fee on the chain comes from this game. The average price of gas fees on January 5 was as high as 763 Gwei.
On January 18, Vitalik Buterin, the co-founder of Ethereum, tweeted that EIP was confirmed in the paper Empirical Analysis of EIP-1559: Transaction Fees, Waiting Time, and Consensus Security jointly researched by Peking University and Duke University. -1559 really improves the user experience. After the London upgrade, the median distribution of user waiting time has shifted to the left as a whole, which means that the waiting time of users has decreased.
Picture Source - Empirical Analysis of EIP-1559: Transaction Fees, Waiting Time, and Consensus Security
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Drawing on the results of the Ethereum London upgrade, the Polygan team hopes to bring improvements to everyone in the ecosystem through these improvements.
as a result of
Polygon believes that the London upgrade will have far-reaching implications for all parties:
For token holders: Since MATIC is a fixed supply, the burning mechanism will promote deflation. According to the simulation forecast, the annual burning of MATIC will account for 0.27% of the total supply.
For users: while enjoying lower gas fees than Ethereum, the cost can be better estimated in the future.
For validators: the future income will only be the priority fee, but the income will benefit from the deflation of MATIC. In the future, both spam transactions and network congestion will be improved.
This article will observe the data performance of Polygon London after the upgrade from the following perspectives:
The transaction fee is determined by the relationship between supply and demand, and the launch of EIP-1559 will not significantly improve the price of gas fees. After the upgrade, the price did not drop significantly compared to before the upgrade, but rose slightly. The average price in the few days after the upgrade remained above 200 Gwei per day, and began to ease at the end of January.
Footprint Analytics - Average Gas Price
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Network usage (Gas Used / Gas Limited)
Looking back at the upgrade of Ethereum from London, network usage has dropped dramatically. It has dropped from about 97% to about 51%, and the utilization rate is very stable, and the fluctuation basically does not exceed 1%.
Footprint Analytics - Ethereum Network Utilization
Likewise, Polygons network usage was between 60% - 90% before January 18th, and immediately dropped below 50.7% after the upgrade. The stability of usage rate fluctuations keeps the state of the entire network stable, and transaction fees are also relatively stable.
Footprint Analytics - Polygon Network Utilization
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The price of ETH has increased after the upgrade in London, while MATIC has not increased but decreased. Mainly because the price of MATIC is more affected by the overall market of the blockchain, the price maintains a high correlation with BTC, and the price of BTC is affected by various factors to drop below $40,000.
Footprint Analytics - Token Price (MATIC vs BTC)
Recently, EU regulations have called for the prohibition of PoW mining. The Central Bank of Russia has also issued a report recommending the ban on cryptocurrencies. Countries have introduced policies that are not conducive to the development of cryptocurrencies. At the same time, the Federal Reserve is expected to raise interest rates in March, and funds are beginning to move around, which is also negative for the blockchain. Numerous reasons have contributed to the recent turbulent decline in cryptocurrencies.
epilogue
epilogue
Polygon has received a lot of attention as a side chain of Ethereum, becoming the third public chain with more protocols after Ethereum and BSC. But since August, the market share has gradually been compressed, and the TVL ranking has dropped from the top 3 to the 8th.
Footprint Analytics official website: https://www.footprint.network
About Footprint Analytics:
Footprint Analytics is a one-stop visual blockchain data analysis platform. Footprint assisted in solving the problem of data cleaning and integration on the chain, allowing users to enjoy the zero-threshold blockchain data analysis experience for free. Provide more than a thousand tabulation templates and a drag-and-drop drawing experience, anyone can create their own personalized data chart within 10 seconds, easily gain insight into the data on the chain, and understand the story behind the data.
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