Ethereum has burned more than a million ETH in the last 3 months – Technology

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 Ethereum worth around $3.8 billion at 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 ) is now worth a total of just over $500 billion. Ethereum's market cap accounts for 18.8% of the $2.7 trillion crypto economy. Three months ago, on August 5, 2021, the Ethereum blockchain was updated and various features were added to the consensus rules. The most transformative included EIP-1559 and EIP-3554, and in particular EIP-1559 have created a new fee scheme that allows the network to burn a portion of Ether.

The summary of EIP-1559 hosted on Github states:

There is a base fee per gas in the protocol, which can move up or down in each block according to a formula that is a function of the gas used in the main block and the gas target (block gas limit divided by elasticity multiplier) of the main block. The algorithm causes the base fee per gas to increase when blocks are above the gas target and decrease when blocks are below the gas target. The basic fee per gas is burned.

Since the launch of the new feature, metrics from Dune Analytics show that 1,001,212 Ether or Ethereum worth $3.8 billion have been burned using today's exchange rates.

At the time of writing, the API is from etherscan.io, which is the circulating ETH Supply indicates that there are 118,472,428 Ether today. The largest Ethereum burner today is still non-fungible token (NFT) marketplace Opensea with 110,081 Ether, or $398 million burned so far.

The burn due to Opensea usage occurred on 7,941,975 Ethereum transfers. Regular Ethereum transfers are at 94,800 bound 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 Ethereum worth $373 million at today's exchange rates were burned using Uniswap V2.

The stablecoins Tether ( USDT ) and usd coin (USDC) are also contributing to strong Ethereum burning. While tether ( USDT ) is the fourth largest burner behind Uniswap V2, USDC is the seventh largest Ethereum burner today. Tether's 11,499,787 transfers are attributed to 53,988 Ether burned, or $210 million. USDC helped burn 20,042 Ether or $77 million today. Other applications such as Metamask, 1inch, Sushiswap and Axie Infinity also contribute to a lot of Ether burning.

What do you think of the 1 million ether burned since August 5th? Let us know your thoughts on this topic in the comments below.

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