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EIP-1559 Adoption - The Daily Gwei #512
Cultivating ultra sound money one transaction at a time.
Ethereum’s most popular network upgrade to date has been EIP-1559. I mean, it’s the only EIP number that 99% of people remember and can actually attach meaning to - that’s a pretty crazy feat in of itself! Though of course it’s much more than that - it brought with it improved transaction inclusion, smoothed-out fees and the fee burn that everyone gets so excited about.
The chart above illustrates something quite interesting - namely that about 80% of the network is now using 1559-style transactions. This means that 20% of transactions on the network are still using the ‘legacy’ transaction type and thus not getting the benefits of EIP-1559 (though the ETH is still being burnt from these transactions). If I had to guess, I’d say this 20% consists of users who have not upgraded their wallets for 1559 support (hardware or otherwise), centralized exchanges/services that have not updated their infrastructure and there is probably some MEV benefit to using old transaction types.
I don’t think we’ll ever get to 100% 1559-style transaction adoption because Ethereum’s network effect is so expansive. For example, you could imagine someone who has a hardware wallet that they haven’t touched in years but has some ETH stored on it. One day, they decide to plug in this hardware wallet, do a transaction without updating the software, and then that transaction would show up in the ‘legacy’ share of the network. Obviously people could also just manually submit legacy-style transactions for fun as well which just further reinforces the fact that getting to 100% 1559-style transaction is basically impossible.
Maybe one day the Ethereum network will be changed to no longer support legacy-style transactions which would force everyone to use 1559-style ones - I don’t think it’s unlikely that something like this would happen. Until then, we’ll keep seeing these legacy transactions on the network for one reason or another - I’m just very happy that these transactions still burn ETH - after all, we’ve got an ultra sound money to cultivate!
Have a great day everyone,
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All information presented above is for educational purposes only and should not be taken as investment advice.