According to data from Ultrasound Money, an Ethereum network tracker, the network now burns an average of 6.18 ETH per minute after 152 days since the implementation of the EIP-1559 proposal, which gave the Ethereum blockchain deflationary functionalities and the ability to burn gas fees, putting the burn rate at $23,484 per minute at today’s price of $3,800 per ETH.
The network has burned a total of 1,362,500 ETH so far, putting the total burn at $5.18 billion at the time of this article.
The Ethereum network has been going through a series of hardfork updates to migrate from a Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS) consensus mechanism.
A hardfork occurs when a major change to a blockchain network’s protocol occurs, resulting in a divergent split between the old protocol and the newer version.
One of the improvements was the London hard fork, which includes five new Ethereum Improvement Proposals (EIPs), all of which are temporary until the permanent Ethereum 2.0 update.
One of the enhancements is EIP-1559, which proposes the implementation of a ‘base fee’ that tracks gas fee prices across the Ethereum network to ensure accurate gas fee projections for network users. It also provides deflationary functionalities to the Ethereum network, allowing it to burn gas costs.
According to Ultrasound Money, OpenSea, the popular Ethereum network NFT marketplace and the world’s largest NFT marketplace, has accounted for the most burns on the network, totaling around 145,700 ETH, or $553.7 million, since it was activated 152 days ago. This is 10.69% of the total number of burns.
Apart from OpenSea, ETH transfers account for 132,760 ETH ($504.5 million) and Uniswap V2 accounts for 114,560 ETH ($435.3 million), respectively.
Axie Infinity, a popular play-to-earn website, is ranked eighth, with 16,915 ETH burned for a total of $64.3 million.