Since the execution of EIP-1559 in August 2021 the number of ETH burned on Ethereum has continued to rise . The recent success of The Merge has further contributed to making ETH deflationary depending on network activity . Until now nearly 3 .37 million ETH have been burned and over 745,000 demolished since The Merge in September . This accounts for 2 .8 % of the total ETH supply and is corresponding to almost $9 .8 billion .
ETH Distribution and Deflationary Impact
Since August 2021 the distribution of ETH has only increased by 3 million units which resulted in an inflation rate of 1 .42% . However with the existing rate of burn which averages 3 .5 ETH per minute since EIP-1559 the distribution has experienced a deflation by 0 .32 % .
Identifying the Top Contributors
To gain insights into the actors participating in the destruction of ETH, we examine the top contributors since EIP-1559 and The Merge . Uniswap consistently dominates the rankings across both periods while new trends surface such as Arbitrum’s growing importance and Blur’s rise in the NFT market . Notably OpenSea shifted from Wyvern to Seaport which showcases how smart contracts evolve over time .
Final Thoughts
As Ethereum continues to burn a substantial amount of ETH which is approaching $10 billion understanding the contributors to this burn becomes crucial . The burn functions when combined with the success of The Merge have potential implications for Ethereum’s deflationary model . Exploring the actors involved and their changing roles provides valuable insights into the dynamics of the network . These insights will become even more valuable as the market transitions to sustainable bull phases in the future .
