Over $4.2 Billion in Cryptocurrency Burned on the Ethereum Network
According to data from the portal Ultrasound, which monitors the state of Ethereum, the number of coins burned has exceeded 1 million ETH, totaling more than $4.2 billion. The process of burning cryptocurrency began in early August 2021.
What Is Cryptocurrency Burning?
Burning cryptocurrency is an intentional process of destroying a certain amount of coins to remove them from circulation and help prevent inflation. The burning of virtual currency started on August 5, 2021, following the release of the London update, which changed the transaction fee calculation algorithm.
Burning Statistics
Currently, 9.01 ETH are burned every minute on the network, and the overall burn rate exceeds 0.8. In total, 1,016,027 ETH have been destroyed so far. The majority of these coins were burned through the following activities:
- Transactions on the NFT platform OpenSea — 111,265 ETH
- Transfers — 99,062 ETH
- Operations on the Uniswap V2 exchange — 94,474 ETH
- USDT transactions on the Tether service — 55,026 ETH
- Operations on the Uniswap V3 exchange — 34,208 ETH
- Transfers via the MetaMask wallet — 22,978 ETH
Upcoming Changes: The Merge
It’s worth noting that in 2022, Ethereum is scheduled to transition from the Proof-of-Work model to Proof-of-Stake, an update known as The Merge. With this new model, miners will no longer be required for the network to function. Instead, blockchain stability will be maintained by cryptocurrency holders, who will receive rewards for supporting the network.