The Ethereum network was upgraded by the London hardfork, which introduced the EIP-1559 package. Since then, the EIP-1559 upgrade made it so a fraction of gas is destroyed during the transaction process and to date, 1,915,220 ether has been burned worth over $6.9 billion using today’s exchange rates.
Ethereum Burn Rate is Closer To 2 Million, 3.57 Ether Is Being Burned Every Second
Ethereum (ETH), a network that uses ethereum, has already burned over 1,915,220 ether and is close to the two-million mark. It has been closely monitored by the community since August 5th, 2021 when the EIP-1559 Improvement was introduced. The 24-hour burn rate at the moment of writing is around 3.57 ether per hour or $9,809.16 each 60 seconds.
EIP-1559 changes the algorithm that is tied to the protocol’s base fee for each gas and burns it. The idea is popular among Ethereum supporters because it causes ethereum to deflation over time. Vitalik Buterin, Ethereum’s co-founder and CEO, stated to Bloomberg that EIP-1559 was London’s most significant part.
“Now it gets much easier to send a transaction that will get included in the next block and that’s very important to user experience,” Buterin explained at the time.
The Gas Fees are Dynamic and Opensea is the largest Ether Burning Entity
EIP-1559 was not implemented for the London upgrade. It did not appear to reduce the excessive gas charges that users had to pay when sending on-chain transactions (layer 1) during the previous weeks. In fact, the very next month after the London upgrade, ETH’s average gas fees skyrocketed to $59 per transaction. Today, the average fee to transfer ethereum (ETH), is lower at 0.006ETH ($16.61/transaction) and 31.3gwei.
The network’s $6.9 million in Ethereum via EIP-1559 is now the largest on-chain gas burner. Opensea, a non-fungible token marketplace (NFT), has been the most prolific. As of this writing, approximately 239,000 Ethereum has been burned by the largest NFT market, which amounts to $790,000,000,348. This was spread across 14,635,232 transfers.
The second largest gas-burning entity is ordinary ether transactions, with 178.166 ether lost to date. Opensea, ordinary ethereum transactions and large ETH-burning entities are protocols and platforms such as Uniswap v2, Tether USDT (USDT), Swaprouter 2 and Metamask.
Do you have any thoughts about Ethereum reaching 2 million Ethereum burned per day? We’d love to hear your views on the subject.
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