Since the implementation of EIP-1559 in August, 1 million ETH has been burned

In a Twitter post published on Wednesday, the blockchain research company CryptoRank revealed that more than 1 million Ether (Ethereum) Since the introduction of the EIP-1559 protocol in August, USD 4.24 billion has been burned London hard forkThe EIP-1559 protocol reforms the Ethereum fee market, modifies the gas fee limit, and introduces the destruction function, which removes part of the transaction fee on the blockchain from circulation and permanently cancels it.

Well-known decentralized applications responsible for the contribution of token destruction include popular non-fungible tokens, or NFT, Platform OpenSea.io and play games to earn NFT game Axie Infinity. Secondly, the transaction volume from decentralized exchanges such as Uniswap, 1inch and Sushiswap constitute a large part of ETH burns. ETH will also be burned from the transfer of stablecoins such as Tether (USDT) And U.S. dollar coins (USDC) Built on the Ethereum blockchain. Finally, wallet users in MetaMask and users who conduct regular ETH transactions also contributed to most of the network activity.

according to data From Ultra Sound Money, it burns 7.67 ETH per minute and burns up to 11,042 ETH per day. At the current rate, approximately 4 million ETH are burned every year. However, the blockchain currently emits about 5.4 million ETH annually. Therefore, the Ethereum network is still at a level of net inflation.

As the Ethereum 2.0 upgrade comes online sometime next year, all of this will change next year, changing the network from Proof of Work Consensus and Proof of Stake Consensus, Among which staking rewards will be much lower than mining rewards. As a result, it will reduce the blockchain’s emission rate far below its burn rate, thereby creating a deflationary ecosystem. Ultra Sound Money predicts that the peak supply of ETH will reach 119.7 million in early 2022 before it will decline.