This week, the Ethereum network’s burn rate reached a milestone by surpassing 2 million ethereum burned worth $5.81 billion since August 5, 2021. The crypto network burns 1.74 Ethereum per minute during the 24-hour period. This equates roughly to $5K of ether being destroyed each 60 seconds.
2. Million Ethereum burned, more than $5K worth of Ether destroyed every minute
The Ethereum (ETH), network, has experienced a lot of changes over the past year. Seven months ago, seven months later the Ethereum Improvement Proposal (1559) was implemented on August 5, 2021.
The network has been degrading ether rapidly ever since. EIP-1559 was the transformation of the algorithm tied to the base fees per gas in protocol. Now, it is burning the base fees per gas. Ethereum advocates like the idea because it makes the crypto network’s supply deflationary.
Ethereum had already destroyed 2,001.495.6 Ethereum by the time this article was written. The amount of Ethereum that was burned, based on the current exchange rates as of March 21st 2022 is $5.81 billion USD.
Although more than 2,000,000 Ethereum has been consumed, the average burn rate per day has been 1.74ether per minute. This is roughly $5,059.05 per hour using the current ether exchange rates. The network consumes 1.51 Ethereum per hour, according to an hour-by-hour measurement.
Opensea, a non-fungible token marketplace (NFT), was the biggest ether burner on March 21. The NFT market had destroyed $229,922 worth of ether. This is worth $790 millions. Average, everyday ethereum transactions represent the second-largest burner as ETH transfers have destroyed 185,920 ether worth $674 million using today’s ETH exchange rates.
Decentralized exchange platform Uniswap v2 ranks third with 126 576 ether burnt, while tether transactions (USDT), rank fourth with 92 325 ETH lost.
Swaprouter and Metamask are other notable burners. At the time this article was written, ethereum had gained 59% over the past 12 months in comparison to the U.S. Dollar and 13.6% during the previous two weeks. In terms of market dominance among the 13,311 crypto assets in existence valued at $1.9 trillion, ethereum’s $348 billion market cap represents 17.8%.
On Monday, the Ethereum network’s average transaction fee was 0.0028 Ethereum or $8.15 for each transfer. The Ethereum network currently charges a transaction fee of 0.0012ETH, or $3.60 for a transaction.
How do you feel about 2,000,000 ethereums that have been burned to date? Comment below and let us know how you feel about the subject.
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