FameEX Hot Topics | Ethereum's Flaming Journey: $6.6B Ether Incinerated Following the London Hard Fork

Since the implementation of Ethereum's London hard fork on August 5, 2023, recent data indicates that approximately 3.46 million ether, valued at an astounding $6.68 billion, has been burned. This equates to an average monthly burn rate of over 146,000 ethereum over a period of 710 days. The London hard fork, which introduced Ethereum Improvement Proposal (EIP) 1559, has resulted in the continuous burning of the base fee portion of transaction fees on the Ethereum network. This process has been ongoing around the clock for the past 23 months.

The cumulative figures show that over 3.46 million ether has been burned since the London hard fork, representing a total value of $6.68 billion. On average, more than 146,000 ether has been destroyed each month since the implementation of EIP-1559. To provide a perspective on the scale of this burn, the $6.68 billion worth of ether could purchase approximately 19,085 single-family homes, assuming an average price of $350,000 per home. EIP-1559 has introduced a deflationary mechanism to Ethereum, gradually reducing the overall ETH supply.

Among the various types of transactions, regular ETH transfers have contributed the most to the reduction, with nearly 300,000 ETH burned. Opensea's non-fungible token (NFT) transactions have resulted in the burning of over 230,000 ether, while Uniswap v2 has contributed to the destruction of close to 200,000 ether. ransactions involving Tether have accounted for the burning of over 150,000 ETH, and combined, Uniswap v3 and v1 have led to the burning of more than 200,000 ETH. As of now, approximately 120,201,621 ETH is in circulation, with a total value of around $232.53 billion.

Since The Merge on September 15, 2022, which transitioned Ethereum from a proof-of-work (PoW) to a proof-of-stake (PoS) blockchain, slightly over 3 million ethereum has been minted. If The Merge had not occurred, the network would have generated 6.5 million ether. Additionally, if Ethereum had remained a PoW blockchain without implementing EIP-1559, an extra 9.9 million ETH would have been added to the existing 120 million ETH in circulation.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.