Hi HODLers,
Back in August, 2021; Ethereum began burning ETH as part of the EIP 1559. Since then, the Ethereum network burned more than $4.6 Billion in Ethereum!
What do I mean by burning?
As per EIP-1559, a portion of all Ethereum transactions are destroyed: a piece of every NFT trade, yield strategy, and even simple token transfers. It’s all getting torched.
This number is so huge that it is hard to understand what it represents. To make it easier for your little brain, over the past 7 days, Ethereum has destroyed 16,364 ETH. This is equivalent to a rate of 1.62 ETH per minute!
As this mechanism increased through time, there are more ETH being burned than new ETH being issued to miners. The Ethereum Supply growth has now dropped to -1.06% per year since EIP 1559!
Making Etherem more deflationnary than Bitcoin. Crazy...
Below is a graph showing the ETH Supply Increase through the past years and since the EIP 1559 implementation.
Which apps are responsible for the most ETH being burned
NFT and DeFi are both responsible for the destruction of 8,000 ETH per week:
- OpenSea is the leader in the NFT category with ~1,298 ETH burned
- Uniswap V3 is the leader in the DeFi category with ~876 ETH burned
Stay safe out there,