According to current metrics, the Ethereum blockchain has burned 2.35 million Ether since the implementation of Ethereum Improvement Proposal (EIP) 1559. During the nine months a value of $8.10 billion was burned and during the past seven days, 18,110 Ether was worth $34.9 million. was destroyed.
2.35 Million Ethereum Burnt – Ethereum Dev Says Merger Could Happen in August
About 288 days ago, Ethereum developers implemented EIP 1559, a rule-set upgrade that fundamentally changed the algorithm tied to a per gas basis fee in the protocol and the network now burns a per gas basis fee.
Since the London upgrade of August 5, 2021, 2.35 million Ether worth $8.10 billion in USD has been liquidated forever after EIP 1559 was codified in the codebase and live.
The day after EIP 1559 went into effect, Ethereum co-founder Vitalik Buterin explained that this change was “definitely the most important part. [the] London [upgrade],
During the last 24 hours, 2,396 Ether worth $4.63 million has been burned. On May 1, 2022, the network saw the largest daily burn rate of all time with 71,718 Ether valued at $138.78 million. The second highest burn rate daily record was on January 10, 2022, as 19,424 Ethereum worth approximately $37.5 million were destroyed that day.
The biggest Ethereum burner today is OpenC as the market has burned 229,925 Ether in 14,639,327 transactions. The gas used for the Ether transfer has burned a total of 207,072 ETH, and Uniswap V2 has burned 131,457 ETH.
While the London upgrade’s EIP 1559 was a major protocol change, the next major shift would be when the merge would be implemented. At that point, Ethereum will transition from its current Proof-of-Work (PoW) consensus algorithm to a full-fledged Proof-of-Stake (PoS) network.
Ethereum proponents are already gearing up for the merge as they suspect the change will be codified sometime this summer. More recently, on May 17th, Ethereum-focused software firm ConsenSys launched an early access version of “Bonsai Trees,” which aims to be a few steps ahead of the official merge transition.
Also, at a recent permissionless conference, Ethereum developer Preston van Loon said The public can see the merge implemented till August. Ethereum developer Tim Beiko recently explained that the merge will go live by Q3 2022. Biko further explained that he “strongly suggests” that miners do not invest in more mining rigs going forward.
Despite the ensuing changes, Ethereum’s PoW hashrate has been at a lifetime high of 14,770,231 block highs on May 13th. Burning Ethereum has just become part of the protocol and many crypto proponents believe that Ethereum will be ‘ultra-sound’ money with deflation mechanisms.
The simulation of the merge indicates that after the transition, Ethereum will become scarce. Currently, Ethereum has an issuance rate of 5.4 million Ether per year, and after the merger, the issuance rate will be only 500,000 Ether per year. While the current supply growth is 3.7% per annum, post-merge, it will be around 0.4% per annum.
Amidst all those changes, Ethereum will have the same burn rate, which is estimated to be around 900,000 Ether per year. However, significant spikes such as the 71,718 ether burned on May 1 could change the estimates substantially.
What do you think about the 2.35 million Ether burned since August 5th, 2021? How do you feel about the approaching merge? Let us know what you think about this topic in the comment section below.
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