Ethereum Has Burned More than 1 Million ETH within 3 Months

The London hard fork upgrade was implemented on the Ethereum network 111 days ago. This upgrade added a new mechanism (EIP-1559), which changed the fee rate on Ethereum to a new scheme. Thanks to this scheme, ether, the network’s crypto asset, deflationary. Since the implementation, about 1 million ETH tokens have been burned and using the exchange rates today, this is worth $38 billion. Ethereum (ETH) is the second-largest crypto asset in the world in terms of market capitalization and using today’s rate, its overall valuation is just over $500 billion. The total crypto economy is worth $2.7 trillion and this makes Ethereum’s share to be around 18.8%. 

The Ethereum blockchain had upgraded almost three months ago on 5th August, 2021 and different features had been added to the consensus rules. EIP-1559 and EIP-3554 were the most transformative, with the former particularly creating a new rate scheme that enabled the network to burn ether. The summary of this feature was provided on Github, which stated that the base fee applicable per gas is burned. After the introduction of the new feature, Dune Analytics provided some statistics, which indicate that around 1,001,212 ether tokens had been burnt. This, as mentioned above, were calculated to be valued at $3.8 billion.

At the time of writing, the total market supply of ether tokens that are currently circulating in the market is about 118,472,428, as per etherscan.io’s API. Despite the ether burning, the biggest burning in history for the token remains to be the 110,081 tokens that were burnt on OpenSea, the non-fungible token (NFT) marketplace and were valued at $398 million at that time. The burning that occurred due to the usage of OpenSea occurred across ethereum transfers of about 7,941,975. As far as regular transfers of Ethereum are concerned, they have burned around 94,800 tokens since the upgrade was made back in August. 

Since the upgrade, the third largest burner of Ethereum is Uniswap V2 (version 2), the decentralized exchange platform (dex). Usage of the Uniswap V2 platform has burned about 92,239 ETH tokens so far, which would be valued at a total of $373 million, keeping today’s exchange rates in mind. It is also important to note that a lot of burning of ether tokens also happens because of the stablecoins usd coin (USDC) and tether (USDT). After Uniswap V2, tether (USDT) is the largest burner of the ether token. 

As far as USDC is concerned, it is considered the seventh largest burner of the ETH tokens today. There have been around 11,499,787 transfers made via Tether and this has resulted in a total of 53,988 ether tokens being burned. These are valued at a total of $210 million. When it comes to USDC, then it has contributed to a total of 20,042 ether tokens being burned and these are valued at $77 million, as per today’s rates. A lot of ether is also burned because of some other applications. These include names like 1inch, Axie, Sushiswap as well as Metamask.