Avalanche burned $18 million worth of AVAX in a week

Avalanche burned $18 million worth of AVAX in a week

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by Max Nevskyi

3 years ago


Over the last week, the Avalanche blockchain achieved a significant record by burning commissions totaling 438,877 AVAX, equivalent to approximately $18.1 million. This amount is ten times higher than the figures for the previous period.

A unique feature of Avalanche is that, unlike Ethereum, where only a dynamically determined portion of the commission is burned, Avalanche burns the entire commission. This was made possible by using a solution based on the Ethereum EIP-1559 improvement proposal, which was implemented in 2021.

There was a significant increase in the rate of token removal from circulation in mid-November, when the supply of AVAX decreased by 85,533 coins. This was linked to a surge in on-chain activity, especially following the introduction of the Ordinals analog.

In December, there was a spike in commissions related to transactions on the ASC-20 standard, leading to increased transaction costs in EVM blockchains. On December 18, the median gas price in Avalanche exceeded 5000 gwei.

However, despite record gas expenses and commission burning, the price of AVAX increased by only 1.5% over the week, trading at around $40. Avalanche ranks 10th in the CoinGecko capitalization ranking with a value of $14.9 billion.

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