This week, the Ethereum network’s burn rate reached a milestone by surpassing 2 million ethereum burned worth $5.81 billion since August 5, 2021. Metrics show the crypto network has a 24-hour burn rate of 1.74 ether per minute, which equates to roughly $5K worth of ether destroyed every 60 seconds.
2 million Ethereum burned, over $5,000 of Ether destroyed every minute
Over the past year, the Ethereum (ETH) network has seen a slew of changes and seven months ago the network implemented Ethereum Improvement Proposal (EIP) 1559 on August 5, 2021.
Ever since then, the network has been destroying ether at an extremely rapid rate, as EIP-1559 transformed the algorithm tethered to the base fee per gas in the protocol and it burns the base fee per gas. Ethereum advocates like the idea because it makes the crypto network’s supply deflationary.
At the time of writing, and since the introduction of EIP-1559 on August 5, Ethereum has destroyed approximately 2,001,495.6 ETH. Using current exchange rates on March 21, 2022, the amount of Ethereum burned equals $5.81 billion in USD value.
While more than 2 million ether has been burned, the speed of burn per day has been coasting along at 1.74 ether per minute or roughly $5,059.05 per minute using current ether exchange rates. Measuring the burn rate by hour shows the network destroys 1.51 ETH per minute.
On March 21, the Opensea non-fungible token (NFT) market is the biggest Ether burner as the NFT market destroyed 229,922 Ether worth $790 million. Average and daily Ethereum transactions represent the second biggest burner, as ETH transfers destroyed 185,920 ether worth $674 million using current ETH exchange rates.
The decentralized exchange (dex) platform Uniswap v2 is the third-largest burner with 126,576 ether burned, and tether (USDT) transactions represent the fourth-largest burner with 92,325 ETH destroyed.
Other notable burners include Swaprouter, Uniswap v3, Metamask, and the USDC stablecoin. At the time of writing, Ethereum has gained 59% over the past 12 months against the US Dollar and 13.6% over the past two weeks. In terms of market dominance among the 13,311 existing crypto assets valued at $1.9 trillion, Ethereum’s $348 billion market capitalization represents 17.8%.
On Monday, the average transaction fee on the Ethereum network is 0.0028 ETH or $8.15 per transfer. The current median-sized transaction fee on the Ethereum network is 0.0012 ETH or $3.60 per transaction.
