How $5.1 billion in Eth was burned to reduce its supply

[Flow-er]

The recent actions taken by the developers of the cryptocurrency is a very surprising one. What the developers does is to reduce the amount of the coins in the blockchain network inoder to reduce its supply. If we follow the simple demand and supply dynamics, the lower the supply, the higher the demand and apparently, the higher the price of the commodity. This activity is dubbed " Burning "

Burning is an artificial way of influencing the price of cryptocurrencies by reducing it quantity in circulation. It's simply taking the cryptocurrency out of circulation. We have been seeing cryptocurrencies been burnt recently and I kept wondering why, until I carried out a deep research into it.

The recent burning was seen in the ethereum network, about $5.1 billion in ETH was burnt. The total quantity burnt was 1.9 million ETH within six months. This actions was taken across all major cryptocurrency exchanges. We hope that the burning will cause a significant spike in the price of ETH.

However, what bug my mind is that- how will the cryptocurrency exchanges that engaged in the burning be compensated for the loss? Statistics show that Uniswap burned 220,000 ETH, OpenSea burned $600 Millon in Eth, which is equivalent to 230,000Eth. These are huge losses and who will provide coverage?

 

[Suba]

Thanks for sharing sis, actually burning crypto can be done by anyone, but usually developers coordinate the burning of cryptocurrencies like Ether whose circulating supply has exceeded what they wanted. If Ether is burned, the developer will ask for donations to whales including crypto exchanges, as well as to anyone who will donate their Ether. Burning cryto is not a loss, although in terms of quantity the amount of Ether they have decreases but after a few days of burning the price increases, so that if the value of the Ether they have is converted to USD then the value will not differ much from what they had originally.

 

[Flow-er]

Thanks for sharing sis, actually burning crypto can be done by anyone, but usually developers coordinate the burning of cryptocurrencies like Ether whose circulating supply has exceeded what they wanted. If Ether is burned, the developer will ask for donations to whales including crypto exchanges, as well as to anyone who will donate their Ether. Burning cryto is not a loss, although in terms of quantity the amount of Ether they have decreases but after a few days of burning the price increases, so that if the value of the Ether they have is converted to USD then the value will not differ much from what they had originally.

Thanks for the clarification. You have really Explained the details behind the burning,.because I keep wondering how such thing is been practiced, considering the amount of Eth in dollars that was burned in reality, it's a calculated effort, suchbm that the amount that was burned would equivalent to the price increase after burning
So, no one is losing by the burning activities. I have learnt something very important today. Thanks once again.