London fork

$5.8 Billion Burned: Second Largest Crypto Network Records 2 Million Ethereum Destroyed in 7 Months

21/03/2022 by Idelto Editor

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. Metrics show the crypto network has a 24-hour burn rate of 1.74 ether per minute, which equates to roughly $5K worth of ether destroyed every 60 seconds.

2 Million Ethereum Burned, More Than $5K in Ether Destroyed Every Minute

During the last year, the Ethereum (ETH) network has seen a slew of changes and seven months ago the network implemented the Ethereum Improvement Proposal (EIP) 1559 on August 5, 2021.

Ever since then, the network has been destroying ether at an extremely rapid rate, as EIP-1559 transformed the algorithm tethered to the base fee per gas in the protocol and it burns the base fee per gas. Ethereum advocates like the idea because it makes the crypto network’s supply deflationary.

At the time of writing, and since the August 5 introduction of EIP-1559, Ethereum has destroyed approximately 2,001,495.6 ETH. Using current exchange rates on March 21, 2022, the amount of ethereum burned is equivalent to $5.81 billion in USD value.

While more than 2 million ether has been burned, the speed of burn per day has been coasting along at 1.74 ether per minute or roughly $5,059.05 per minute using current ether exchange rates. Measuring the burn rate by hour shows the network destroys 1.51 ETH per minute.

On March 21, the non-fungible token (NFT) marketplace Opensea is the largest ether burner as the NFT market has destroyed 229,922 ether worth $790 million. 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.

The decentralized exchange (dex) platform Uniswap v2 is the third-largest burner with 126,576 ether burned, and tether (USDT) transactions represent the fourth-largest burner with 92,325 ETH destroyed.

Other notable burners include Swaprouter, Uniswap v3, Metamask, and the stablecoin USDC. At the time of writing, ethereum has gained 59% during the last 12 months against the U.S. dollar and 13.6% over the last 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 average transaction fee on the Ethereum network is 0.0028 ETH or $8.15 per transfer. The current median-sized transaction fee on the Ethereum network is 0.0012 ETH or $3.60 per transaction.

What do you think about the 2 million ethereum burned so far? Let us know what you think about this subject in the comments section below.

Ethereum After 1559: Network Nears 2 Million ETH Burned Worth Over $6.9 Billion

26/02/2022 by Idelto Editor

Approximately 205 days ago, the Ethereum network upgraded via the London hard fork which implemented the packaged Ethereum Improvement Proposal (EIP) 1559. 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 Inches Closer to 2 Million Burned, 3.57 Ether Is Burned Every Minute

The Ethereum (ETH) network has burned approximately 1,915,220 ethereum and the metric is nearing the two million mark. Since the EIP-1559 improvement was added on August 5, 2021, the community has been observing how much ether is being burned on a daily basis. At the time of writing, the 24-hour burn rate is 3.57 ether per minute or around $9,809.16 every 60 seconds.

EIP-1559 essentially changes the algorithm tethered to the base fee per gas in the protocol and it burns the base fee per gas. Ethereum advocates have been fans of the idea because it makes ethereum (ETH) deflationary over time. When the London hard fork was implemented, Ethereum co-founder Vitalik Buterin told Bloomberg that EIP-1559 was the most important part of London.

“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.

Gas Fees Remain Dynamic, Opensea the Largest Ether Burning Entity

Weeks after the London upgrade, EIP-1559 did not seem to affect the high gas fees users dealt with while trying to send on-chain (layer one) transactions. In fact, the very next month after the London upgrade, ETH’s average gas fees skyrocketed to $59 per transaction. The average gas fee to push an ethereum (ETH) transfer today is much lower, at 0.006 ETH ($16.61) per transaction or 31.3 gwei.

Meanwhile, as the network has destroyed $6.9 billion in ether via EIP-1559, the biggest on-chain gas burner is the non-fungible token (NFT) marketplace Opensea. At the time of writing, the leading NFT market has burned approximately 229,916 ether worth $790,499,348 across 14,635,232 ETH transfers.

Ordinary ethereum transactions make up the second-largest gas-burning entity with 178,166 ether destroyed to date. Large ETH-burning entities following Opensea and ordinary ethereum transfers include protocols and platforms like Uniswap v2, Tether (USDT), Swaprouter 2, Uniswap v3, and Metamask.

What do you think about the Ethereum network steadily approaching 2 million ether burned? Let us know what you think about this subject in the comments section below.

Ethereum Has Burned 1.2 Million ETH in 4 Months, Close to $5 Billion in Ether Destroyed

28/12/2021 by Idelto Editor

With three days left until the end of 2021, the Ethereum network and its native token ether have had a phenomenal year as ether has increased more than 450% in value in 12 months. 145 days ago, on August 5, the Ethereum network implemented the London hard fork and since that day, 1,283,226 ether worth close to $5 billion has been burned.

Burning $5 Billion in Ether in 4 Months

Around four months ago, Ethereum implemented the London upgrade which added a number of new rule-sets to the chain. The most transformative included EIP-1559, an Ethereum rule-set improvement that created a new fee rate scheme allowing the network to burn a portion of 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. The amount of value burned to-date is 31.57% higher than what had been burned on November 24, when the burn rate crossed 1 million ether. Estimates indicate that there’s 118,926,664 ether in circulation today.

NFT Platform Opensea Burns the Most Ether

The biggest burner has been the non-fungible token (NFT) marketplace Opensea as it has burned 134,126 ether worth $498 million across 9.5 million 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 has burned 112,159 ether worth $457 million.

The stablecoin tether (USDT), used on Ethereum, has burned 67,932 ether worth $268 million and Uniswap v3 has burned 42,020 ether worth $167 million. The top five ETH burners are followed by Metamask (29.2K ether burned), USDC (25.9K ether burned), Axie Infinity (16.7K ether burned), Sushiswap (15.1K ether burned), and the Opensea Registry (14.8K ether burned).

What do you think about the 1.2 million ether burned since August 5? Let us know what you think about this subject in the comments section below.

Ethereum Has Burned More Than a Million ETH Over the Last 3 Months

24/11/2021 by Idelto Editor

111 days ago, the Ethereum network implemented the London hard fork upgrade which added a mechanism (EIP-1559) that changed Ethereum’s fee rate to a new scheme that makes the crypto asset ether deflationary. Since then 1 million ether has been burned or the equivalent of around $3.8 billion worth of ethereum using today’s exchange rates.

Over a Million Ether or $3.8 Billion Burned to Date

The second-largest crypto asset in terms of market capitalization, ethereum (ETH) has an overall valuation today just above $500 billion. Ethereum’s market capitalization represents 18.8% of the $2.7 trillion crypto economy. Three months ago, on August 5, 2021, the Ethereum blockchain upgraded and added various features to the consensus rules. The most transformative included EIP-1559 and EIP-3554, and EIP-1559 in particular created a new fee rate scheme that allows the network to burn a portion of ether.

EIP-1559’s summary hosted on Github states:

There is a base fee per gas in protocol, which can move up or down each block according to a formula which is a function of gas used in parent block and gas target (block gas limit divided by elasticity multiplier) of parent block. 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.

Since the new feature was introduced, metrics from Dune Analytics indicate 1,001,212 ether or $3.8 billion worth of ethereum using today’s exchange rates has been burned.

At the time of writing, etherscan.io’s API which shows the circulating ETH supply indicates that there’s 118,472,428 ether in existence today. The biggest ethereum burner today is still the non-fungible token (NFT) marketplace Opensea with 110,081 ether or $398 million burned to date.

The burning stemming from Opensea usage took place across 7,941,975 ethereum transfers. Regular ethereum transfers are tethered to 94,800 ETH burned since the upgrade in August. The decentralized exchange (dex) platform Uniswap V2 (version 2) is the third-largest ethereum burner since the upgrade. 92,239 ether or $373 million worth of ethereum using today’s exchange rates has been burned stemming from Uniswap V2 usage.

The stablecoins tether (USDT) and usd coin (USDC) also contribute to a lot of ethereum burning. While tether (USDT) is the fourth largest burner behind Uniswap V2, USDC is the seventh-largest ethereum burner today. Tether across 11,499,787 transfers has attributed to 53,988 ether burned or $210 million. USDC has contributed to the burning of 20,042 ether today or $77 million. Other applications like Metamask, 1inch, Sushiswap, and Axie Infinity also contribute to a lot of ether burning.

What do you think about the 1 million ether burned since August 5? Let us know what you think about this subject in the comments section below.

Ether Inferno: Ethereum Network Burned Over $2.4 Billion Worth of ETH in 87 Days

31/10/2021 by Idelto Editor

87 days ago, the Ethereum network successfully implemented the London hard fork upgrade, and ever since then over 700,000 ether has been burned, or more than $2.4 billion using today’s exchange rates.

702,886 Ethereum Burned Since the London Hard Fork

Data from Dune Analytics indicates that on October 31, 2021, otherwise known as Halloween, 702,886 ethereum (ETH) has been burned. The burning of ethereum started on August 5, 2021, when the Ethereum network successfully implemented the London hard fork upgrade and EIP-1559.

At the time, the London hard fork upgrade included roughly five different changes but the most transformative were EIP-1559 and EIP-3554. While EIP-3554 changed the Ethereum network’s difficulty bomb, EIP-1559 changed Ethereum’s fee rate to a new scheme that makes the crypto asset ether deflationary.

Just recently, Ethereum implemented the Altair upgrade which helps smooth the consensus process from proof-of-work (PoW) to proof-of-stake (PoS). After Altair was implemented, ethereum (ETH) tapped an all-time high (ATH) two days ago on October 29, reaching $4,467 per ether.

The 702,886 ethereum (ETH) that has been burned to date is worth roughly $2.476 billion using exchange rates on October 31.

The biggest ETH burner today is the non-fungible token (NFT) marketplace Opensea which has burned 91,171 ether. This is followed by typical ether transactions that everyday users and organizations send which amounts to 63,441 ether burned. The decentralized exchange (dex) Uniswap V2 has burned 51,217 ether, making it the third-largest burner today.

While tether (USDT) is the fourth-largest burner on the network on Sunday, the stablecoin USDC is the eighth-largest in the pack. Other notable platforms and networks that contribute significantly to the ether burn rate include Metamask, Axie Infinity, and the dex aggregator 1inch.

Meanwhile, statistics from bitinfocharts.com indicate the average transaction fee on the ETH network is 0.012 ether or $51.16. Metrics from l2fees.info are far more modest with Ethereum network fees recorded at $10.21 per transaction. L2fees.info also shows that transferring Ethereum-based tokens can cost $23.26 per transfer and swapping a token via a smart contract can cost $51.05 per transaction.

What do you think about the 700K ether or $2.4 billion worth of ethereum burned since August 5? Let us know what you think about this subject in the comments section below.