As a result, only a considerable upward push could eliminate ETH’s stagnation against BTC and kickstart the next leg of the rally for the second-largest cryptocurrency. The development coincided with the ETH/USD’s 8.5% jump on Friday to $4,336 local high, after a drop to $3,957. Bullish traders assessed the burn’s significant effect on Ether’s circulating supply and increased their long positions in anticipation of further upsides. Coin Culture is an independent media outlet that aims to provide an Aussie take on crypto, digital assets, and investing. During the bull run of 2021, $20 million to $75 million worth of ETH was being destroyed daily. This has fallen to only around $2 million to $4 million worth of ETH burned every day in December 2022.

  • ETH is also burned from transfers from stablecoins like Tether and USD Coin built on the Ethereum blockchain.
  • In fact, the very next month after the London upgrade, ETH’s average gas fees skyrocketed to $59 per transaction.
  • That’s all about to change next year when the Ethereum 2.0 upgrade goes live, transitioning the network from a proof-of-work consensus to that of proof-of-stake, where staking rewards will be far lower than mining rewards.
  • Instead of a trustworthy model, there will be a so-called “messaging protocol” that software such as a public key infrastructure is widely used on the web to promote trust in the network.

The change was designed to slow the token’s growth rate and boost its price while also alleviating some of the worst elements of network congestion by increasing block sizes to include more transactions. Fee market, modifying the limit for gas fees and introducing a burn feature that takes a portion of transaction fees on the blockchain out of circulation, to be canceled permanently. The user, as such, estimated based on on-chain data that during the upcoming year a total of 1.83 million ETH worth over $5.7 billion could be burned. The value of this ether could go up even higher in the near future, however, as some believe the cryptocurrency could outperform bitcoin.

According to data from, some of the biggest ETH burners so far have been Uniswap, OpenSea, and Tether. The first on the leaderboard, though, is a mysterious “$LONDON Gift” project that seems to be dedicated to celebrating the London hardfork. A few deflationary blocks have already been added to the chain, with the amount of ETH burned higher than the block rewards . Obviously you need testnets and so on, but at worst if there are any shenanigans we’d get a lot of eth burned and get to be served very well done stake perhaps even as soon as October. For holders this means more eth gets burned provided demand for network usage remains the same with miners perhaps fishing for tips. The burning mechanism that was introduced as a part of the Ethereum London upgrade in early August has now destroyed more than one million ETH.

Taking this into account, since the beginning of the “DeFi summer” up to 3.3 million ETH could have been spent on transactions. The Shibarium team reaffirmed that BONE would be the only token for paying gas fees. He became familiar with Bitcoin back in 2013, but began diligently studying the blockchain technology and its economic implications in 2017.

762 ETH Worth $6M Was Just Burned

It would result in a decline in the blockchains emission rate that is far lower than its burn rate and develop a deflationary environment. Ultra Sound Money predicts that the peak supply for Ethereum will reach 119.7 millions in 2022, prior to it begins to decrease. A deep dive into the daily ETH supply burned and gas fees data from Glassnode indicates that the mean gas fee has fallen significantly to around Gwei from around 100 Gwei prior to the implementation of EIP 1559. For instance, the average gas fee ranged from 100 to 200 Gwei between January and April 2021, while it shot up beyond 200 Gwei during network congestion. 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.

One million ETH worth burned

The network switched to a deflationary issuance several times over the past couple of months as more ETH was being burnt than being produced. At current prices of around $4,300, that is equivalent to a whopping $4.3 billion. Ethereum passed the $1 billion burned milestone in mid-September. That’s to the tune of $4 billion for the quarter, 4x previous estimates, but naturally this is variable as it depends on network demand for ethereum.

Crypto Market Highlights December 21, 2022

111 days ago, the Ethereum network implemented the London hard fork upgrade and added a mechanism (EIP-1559) to change the rate of Ethereum to a new scheme to deflate the encrypted asset ether. Since then, using today’s exchange rate, 1 million Ether or the equivalent of about 3.8 billion U.S. dollars worth of Ethereum have been burned. PILANI ( – Ethereum’s ETH burning feature activated by the London hard fork upgrade took 950,000+ coins out of supply. According to the latest data, the largest smart contract blockchain will have burned 1 million ETH in the next few days.

Using current exchange rates, that’s $12,158.97 worth of ethereum destroyed every minute. While a decentralized model is advocated, the platform actually differs from traditional decentralized exchanges in that it requires users to enter Know Your Customer information. Only after the user has transmitted this personal data can he participate in the typical Net 3 functions of wallet connectivity and digital asset trading.