On August 5, 2021, Ethereum implemented the Ethereum Improvement Proposal (EIP) 1559 as part of the London upgrade. Since then, over 660 days have passed, and the upgrade has resulted in the burning of 3.33 million Ethereum (ETH) valued at $6.1 billion as of the end of May 2023.
The primary driving force behind this burning is the everyday traditional transfers of ether, which have led to the destruction of 285,576 ether valued at $522 million. Opensea platform stands as the second largest contributor to this burning since August 2021, with 230,050 ETH burned as a result of associated transactions. Similarly, transactions associated with Uniswap v2 have contributed to the destruction of 179,571 ether since 2021. When combining the effects of conventional ether transfers, Opensea, and Uniswap-related transactions, the collective burn amounts to nearly 700,000 Ether.
Additionally, Tether’s ERC20 transactions have played a role in the burning of 146,837 ether since 2021, while Uniswap v3 transfers have contributed to the burning of 120,889 ETH. Other notable contributors to the burn include Metamask, USDC, Otherdeed, and the creation of new contracts.
Over the past seven days, the burn rate is 3.51 ether per minute, resulting in the destruction of more than 28,000 Ethereum. Uniswap-associated transactions have outpaced conventional ETH transfers, further solidifying its position as one of the leading burners.
To put the value of the burned Ethereum into perspective, it could have been used to acquire approximately 14,000 homes at the current average price of $436,000 per dwelling. Alternatively, the sum of $6.1 billion could have purchased around 25,206 low-end Lamborghini Huracans priced at $242,000 each.
It is interesting to note that between October 2021 and April 2022, the US government was spending nearly $500 billion each month, emphasizing its ability to burn through money at a much faster pace than the Ethereum network.
What are your thoughts on Ethereum’s journey of burning 3.33 million ether valued at $6.1 billion? Let us know in the comments section below.