- More than 700,000 ETH were burned in just the first three months, signaling the scale of future burning rates.
- The primary driving force behind this burning is traditional ETH transfers on a daily basis.
- OpenSea makes the second largest contribution with the burning of 230,050 ETH as a result of associated transactions.
Over the past 21 months following the implementation of Ethereum EIP 1559, billions of dollars worth of ETH have been burned.
Ethereum Burnings Continue Rapidly
The London upgrade, which was marked as a significant event in Ethereum history, paved the way for future ones. More than 700,000 ETH were burned in just the first three months, signaling the scale of future burning rates.
The primary driving force behind this burning is traditional ETH transfers on a daily basis. Traditional ETH transactions alone caused the burning of 285,576 ETH worth $522 million. OpenSea makes the second largest contribution with the burning of 230,050 ETH as a result of associated transactions. Uniswap v2 transactions also played a notable role, contributing to the burning of 179,571 ETH since 2021. These three contributions make up almost 700,000 ETH in total.
Other notable contributors to the burning rate include Tether’s ERC20 transactions, which played a role in the burning of 146,837 ETH, and Uniswap v3 transfers, which burned 120,889 ETH. The all-time leaderboard includes significant burning contributors such as Metamask, USDC, Otherdeed, and the creation of new contracts.
Token Burning Statistics in Ethereum
Looking at the last seven-day statistics, the burning rate is 3.51 ETH per minute, and more than 28,000 Ethereum are disappearing. Transactions associated with Uniswap, in particular, are solidifying their position among the leading burners on today’s Ethereum network, surpassing traditional ETH transfers.
To understand the magnitude of burned Ethereum, we can explore alternative uses for its value. The current average price of a home in the United States is determined to be $436,000. The value of the estimated $6.1 billion burned Ethereum could have been used to purchase approximately 14,000 homes at this average price. Alternatively, the same value could enable the purchase of approximately 25,206 low-cost Lamborghini Huracan luxury cars at a price of $242,000 each.
Interestingly, a striking contrast emerges when compared to the spending tendencies of the US government. Between October 2021 and April 2022, the government was spending approximately $500 billion faster each month than on the Ethereum network. The bureaucratic network highlights how quickly government spending occurs, consuming $6.1 billion in just 8.8 hours.
Burning rates and the value of burned ETH demonstrate the significant economic activity and transformative power of decentralized finance. As Ethereum continues to evolve and undergo more updates, the burning phenomenon is likely to continue, shaping the dynamics of the ecosystem and providing new opportunities for decentralized applications and economic models.
