One million ETH worth burned since the launch of EIP-1559 in August

In a Twitter post published on Wednesday, blockchain research firm CryptoRank revealed that over 1 million ethers (ETH) valued at US $ 4.24 billion since the EIP -1559 was launched in August as part of a really hard fork in London Dollars were burned. The EIP-1559 protocol reformed the Ethereum fee market, changed the limit on fuel fees and introduced a credit function that permanently canceled part of the transaction fees on the blockchain.

Notable decentralized apps responsible for tokenized posts include the popular inedible tokens or NFTs, the OpenSea.io platform, and the NFTs game for money Axie Infinity. Next, the trading volume of decentralized exchanges like Uniswap, 1inch and Sushiswap makes up a large part of the ETH burned. ETH was also burned when switching from stablecoins like Tether (USDT) and USD Coin (USDC) built on top of the Ethereum blockchain. Finally, the users of the MetaMask wallet and those who make regular ETH transactions also contribute to much of the network’s activity.

@Ether The mechanism for burning transaction fees removed 1 million #ETH from network traffic since it came into force.

https://t.co/oLDJyg9PyC pic.twitter.com/FwkmI8lL6x

– CryptoRank platform (@CryptoRank_io) November 24, 2021

According to data from Ultra Audio Income, 7.67 ETH are burned per minute and up to 11,042 ETH per day. At the current rate, around 4 million ETH are burned each year. However, the blockchain currently emits around 5.4 million ETH per year. As a result, the Ethereum network remains inflationary on a net basis.

All of that will change next year when the Ethereum 2 upgrade comes out next year and moves the network from proof-of-work consensus to proof-of-stake where staking rewards will be much lower than proof -of -work consensus with mining rewards. As a result, it will reduce the blockchain’s emissions rate to much lower than its burn rate, creating a deflationary ecosystem. Extremely Seem Dollars predicts that ETH’s peak supply will hit 119.7 million in early 2022 before continuing to decline.

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