Ethereum EIP-1559: Over 4.5 Million ETH Burned Since Implementation

Understanding Ethereum's EIP-1559 and Its Impact on ETH Supply

Since the implementation of Ethereum Improvement Proposal (EIP) 1559, significant changes have been witnessed in the way transactions are processed on the Ethereum blockchain. EIP-1559 introduced a base fee for Ethereum transactions and a burn mechanism that permanently removes ETH from circulation, thereby impacting the overall supply of Ethereum.

Key Statistics on ETH Burned

As of the latest reports, a staggering 4,523,479.74 ETH has been burned, which holds a value exceeding $15.3 billion. This burn is significant not just for the current ETH holders, but it indicates a shift towards a deflationary model for Ethereum.

Breakdown of ETH Burn Sources

On-chain Transfers: Approximately 8.17% of the total ETH burned comes from on-chain transfers.
Opensea NFT Transactions: Contributing around 5.08% to the burn, the popular NFT marketplace has played a crucial role in this change.
Uniswap DEX Transactions: The decentralized exchange platform Uniswap has burned 225,723.78 ETH, which accounts for 4.99% of the total ETH burned.
Tether (USDT) Transactions: Similarly, Tether transactions on the Ethereum network have led to the burning of 205,458.95 ETH, representing 4.54% of the total.

Current ETH Inflation Rate

The inflation rate of the Ethereum network is currently measured at a moderate 0.820%. This is indicative of a healthy network where the circulating supply has increased by 3,245,017.99 ETH since the implementation of the hard fork associated with EIP-1559.

Conclusion

The implementation of EIP-1559 has not only transformed Ethereum's transaction dynamics but has also impacted its supply characteristics by introducing a burn mechanism. As the total amount of ETH burned grows, the potential for ETH to become a deflationary asset becomes more apparent. Stakeholders and investors should keep an eye on these developments as they could shape the future value of ETH.