There are three days until the 2021 end and the Ethereum network has had an amazing year. The value of ether has increased over 450% in the last 12 months. The London hard fork was implemented by the Ethereum network on August 5th, and 1,283,226 Ethereum worth nearly $5 billion have been burnt since then.
In 4 Months, $5 Billion of Ether Burned
Four months ago Ethereum launched the London upgrade. This added many new rule-sets and rules to the network. EIP-1559 is the best-known Ethereum rule set improvement. It created a fee rate scheme that allows for the burning of some ether.
“The algorithm results in the base fee per gas increasing when blocks are above the gas target, and decreasing when blocks are below the gas target. The base fee per gas is burned,” EIP-1559’s description notes.
As of today, December 28, 2021, 1.28 million ether has been destroyed by the burn process, which equates to close to $5 billion in USD value using today’s ETH/USD exchange rate. This value is now 31.57% more than the 1,000,000 ether that was burnt on November 24th, when it reached this level. Estimates indicate that there’s 118,926,664 ether in circulation today.
NFT Platform Opensea Burns Most Ether
Opensea, a non-fungible token marketplace (NFT), has been the biggest burner with 134126 Ethereum worth $498 Million across 9.5million transactions. Traditional ether transfers by network participants burned 122,365 ether since August 5, which equates to $483 million using today’s ETH exchange rates. The decentralized Exchange (dex), Uniswap v2 amounted to $457 Million.
The USDT stablecoin tether (USDT) has used Ethereum to burn 67.932 ether. Uniswap v3 likewise has burned 42.020 ether, worth $167 Million. Metamask (29.5K ether burnt), USDC (25.9K ether burnt), Axie Infinity (16.7K ether), Sushiswap (5.1K ether) and the Opensea Registry (14.8K ether).
Let us know your thoughts on the estimated 1.2 Million ethers burned between August 5 and 8. Please comment below to let us know your thoughts on this topic.
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