With nearly 3.37 million ETH burned for $9.8 billion, this is an opportunity to take stock of Ethereum’s burn functions. Who contributes the most to reducing emissions on the network?
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Près de 10 milliards de dollars d’ETH détruits : qui participe le plus au burn sur Ethereum ?
Over 3 million ETH have already been burned
Since the entry into force of EIP-1559 on Ethereum in August 2021, the number of ETH burned continues to grow. This trend has been accentuated by the success of The Merge, which sometimes even tends to make the asset deflationary, depending on the activity present on the network.
So, nearly 3.37 million units have been burned since EIP-1559, of which just over 745,000 have been destroyed since The Merge in September, which altogether corresponds to 2.8% of the total quantity of ETH. At the current asset price, that’s nearly $9.8 billion.
Since August 6, 2021, the distribution of ETH has therefore only increased by 3 million units, i.e. inflation of 1.42%. At the current rate, smoothing the average since that date, 3.5 ETH are destroyed every minute.
Taking The Merge as a reference point, said distribution even experienced a deflation of 0.32%:
Figure 1 — Evolution of ETH issuance since EIP-1559
After a dip between late summer and early fall last year, the amount of ETH destroyed each day has risen above 2,500 daily units since early January. The chart below even shows a spike near 14,600 in early May, when the euphoria around PEPE led to the explosion of transaction fees on the network:
Figure 2 — Amount of ETH burned each day
👉 To go further — All about the different types of cryptocurrency burn
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Who generates the most burn on ETH?
In order to better understand the actors participating the most in the destruction of ETH, here is a table representing a snapshot of the burns performed on the one hand from the EIP-1559, and from The Merge. For each event, the table lists the top 10 protocols, smart contracts, or decentralized finance applications (DeFi), for example:
Protocol/Smart Contract/NFT Collection, etc. ETH burned from EIP-1559 Protocol/Smart Contract/NFT Collection, etc. ETH burned since The Merge ETH transfers 287,461 Uniswap Universal Router 82,292 OpenSea Wyvern V1 230,050 ETH transfers 45,977 Uniswap V2 182,373 Uniswap V2 45,141 USDT 147,927 USDT 33,439 Uniswap V3 121 35 1 Uniswap V3 26 230 Uniswap Universal Router 82,294 OpenSea Seaport 23,403 OpenSea Wyvern V2 70,774 Creation of smart contracts 17,243 MetaMask Swap Router 67,063 Blur.io 16,508 USDC 59,033 MetaMask Swap Router 15,195 Otherdeed (Otherside collection) 56,124 Arbitrum 13,793
Figure 3 — Actors contributing the most to ETH burn since EIP-1559 and The Merge
The comparison of the two classifications allows in particular to see new trends emerge. For example, Arbitrum is growing in importance, or Blur is making a name for itself in the non-fungible token (NFT) market.
Besides, some smart contracts take over from others, this is for example the case of OpenSea which moved from Wyvern to Seaport. And others, like Uniswap, which largely dominates the rankings, whatever the period.
While we are technically still in the bear market, it will be interesting to take stock of this data. when the market re-enters durably bullish phases.
👉 Also in the news — Does Lido Finance represent a risk of centralization for Ethereum?
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Sources: Etherescan, Ultra sound money
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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