Ethereum after the London hard fork: 3.46 million ethers burned – what does this mean for the future of the cryptocurrency?

Ethereum: Burned Funds After the London Hard Fork

The Ethereum network has witnessed the burning of nearly 3.46 million ethers since the introduction of the London hard fork on August 5, 2023, translating to an impressive value of burned funds amounting to $6.68 billion. Let’s delve deeper into this phenomenon and its consequences for the world’s second-largest cryptocurrency.

Ether Burning since the London Hard Fork

Since the implementation of the London hard fork, 23 months have passed during which an average of over 146,000 ethereums were burned monthly. The Ethereum Improvement Proposal (EIP) 1559 is the main factor that has led to the consistent burning of a portion of the transaction fee on the Ethereum network. As a result, over 3.46 million ethers have been burned so far, removing $6.68 billion worth from the market.

Major Ether Burnings

The burning of ether had various sources. Regular ETH transfers accounted for the largest burn, reaching nearly 300,000 ETH. NFT-related transactions on the Opensea platform contributed to burning over 230,000 ethers, while Uniswap v2 led to the burning of almost 200,000 ETH. Tether-related transactions burned over 150,000 ETH, illustrating the diversity of processes generating ether burning.

Stable Circulating Supply

Following the implementation of EIP-1559, the circulating supply of ether is approximately 120,201,621 ETH with a value of about $232.53 billion. It is worth noting that since The Merge on September 15, 2022, the Ethereum network has transitioned from a proof-of-work (PoW) blockchain to a proof-of-stake (PoS) one. Without The Merge, the network would have generated 6.5 million ethers, emphasizing the change in the cryptocurrency’s economics.

The Future of Ethereum

With the continuation of its deflationary path, further impact on the future of the Ethereum network can be anticipated. Ether burning is gaining importance as one of the key elements of the cryptocurrency economy and supply control mechanism. The dynamics of these processes will have a significant influence on the further development and value of Ethereum compared to other cryptocurrencies in the market.