This week, the burn rate of the Ethereum network reached a milestone, surpassing the 2 million Ethereum burn of $5.81 billion since August 5, 2021. Metrics show that the crypto network has a 24-hour burn rate of 1.74 Ether per minute, which is roughly equivalent to $5K. The price of Ether is destroyed every 60 seconds.
2 Million Ethereum Burned, Over $5K in Ether Lost Every Minute
Over the past year, the Ethereum (ETH) network has undergone several changes and seven months ago the network implemented Ethereum Improvement Proposal (EIP) 1559 on August 5, 2021.
Since then, the network has been dissipating ether very rapidly, as EIP-1559 changed the algorithm to have a base fee per gas in the protocol and it burns a per gas base fee. Ethereum advocates this idea as it makes the crypto network’s supply deflationary.
At the time of writing, and since the introduction of EIP-1559 on August 5th, Ethereum has destroyed approximately 2,001,495.6 ETH. Using current exchange rates on March 21, 2022, the amount of Ethereum burned is equivalent to $5.81 billion in USD value.
While over 2 million Ethers have been burned, the per-day burn rate is 1.74 Ether per minute or approximately $5,059.05 per minute using current Ether exchange rates. Measuring the burn rate by the hour shows that the network burns 1.51 ETH per minute.
On March 21, the non-fungible token (NFT) market Opensea is the biggest ether burner as the NFT market destroyed 229,922 ether worth $790 million. On average, daily Ethereum transactions represent the second biggest burner as ETH transfers destroyed 185,920 Ether worth $674 million using today’s ETH exchange rates.
Decentralized exchange (DEX) platform Uniswap v2 is the third largest burner with 126,576 Ether burns, and Tether (USDT) represents the fourth largest burner with 92,325 ETH burned in transactions.
Other notable burners include SwapProuter, Uniswap v3, MetaMask, and the stablecoin USDC. At the time of writing, Ethereum is up 59% against the US Dollar in the past 12 months and 13.6% over the past two weeks. In terms of market dominance among 13,311 crypto assets worth $1.9 trillion, Ethereum’s $348 billion market cap represents 17.8%.
On Monday, the average transaction fee on the Ethereum network was 0.0028 ETH or $8.15 per transfer. The current average size transaction fee on the Ethereum network is 0.0012 ETH or $3.60 per transaction.
What do you think about the 2 million Ethereum burned so far? Let us know what you think about this topic in the comment section below.
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