One million ETH values ​​have been burned since the launch of EIP-1559 in August

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In a Twitter post published on Wednesday, blockchain research firm CryptoRank revealed that since the EIP-1559 protocol was launched in August under the London Hard Fork, over 1 million ethers (ETH) (valued at US $ 4.24 billion) Dollars) were burned. The EIP-1559 protocol reformed the Ethereum fee market, changed the limit for gas fees and introduced a burn function that removes part of the transaction fees on the blockchain and is permanently canceled.

Notable decentralized applications responsible for contributing to token burning include popular non-fungible tokens or NFTs, the OpenSea.io platform, and the Axie Infinity game for earning NFTs. Next, the volume of transactions from decentralized exchanges like Uniswap, 1inch and Sushiswap made up a large part of the ETH burns. ETH is also burned in transfers of stablecoins such as Tether (USDT) and USD Coin (USDC), which are based on the Ethereum blockchain. Finally, wallet users in MetaMask and those who make regular ETH transactions also contributed to network activity.

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According to data from Ultra Sound Money, 7.67 ETH are burned every minute and up to 11,042 ETH daily. As things stand, around 4 million ETH are burned annually. However, the blockchain currently emits around 5.4 million ETH per year. Hence, the Ethereum network is still inflationary on a net basis.

That will change next year when the Ethereum 2.0 upgrade goes live and the network moves from a proof-of-work consensus to a proof-of-stake consensus where staking rewards will be far lower than that the mining rewards. As a result, it would bring the blockchain’s emissions rate well below its burn rate, creating a deflationary ecosystem. Ultra Sound Money predicts that ETH’s peak supply will hit 119.7 million in early 2022 before it starts to decline.