FameEX Hot Topics | Ethereum's Blazing Path: London Hard Fork Consumes $6.6 Billion Worth of Ether

Since the London hard fork implementation on August 5, 2023, Ethereum's network has witnessed the burning of approximately 3.46 million ether, amounting to an astonishing $6.68 billion. This equates to an average monthly burn rate of over 146,000 ethereum over a span of 710 days. The London hard fork, which introduced Ethereum Improvement Proposal (EIP) 1559, has brought about a continuous burning mechanism for the base fee portion of transaction fees on the Ethereum network. This process has been ongoing 24/7 for the past 23 months.

The cumulative data highlights the incineration of over 3.46 million ether since the London hard fork, representing a total value of $6.68 billion. On average, more than 146,000 ether has been eradicated each month since the implementation of EIP-1559. To grasp the magnitude of this burn, the value of $6.68 billion worth of ether could purchase approximately 19,085 single-family homes, assuming an average price of $350,000 per home. EIP-1559 has introduced a deflationary mechanism to Ethereum, progressively diminishing the overall ETH supply.

Among the various transaction types, regular ETH transfers have contributed the most to the reduction, with nearly 300,000 ETH burned. Opensea's non-fungible token (NFT) transactions have led to the burning of over 230,000 ether, while Uniswap v2 has contributed to the destruction of almost 200,000 ether. Transactions involving Tether have accounted for the burning of over 150,000 ETH, and combined, Uniswap v3 and v1 have resulted in the burning of more than 200,000 ETH. As of now, approximately 120,201,621 ETH is in circulation, with a total value of around $232.53 billion.

Since The Merge on September 15, 2022, which transitioned Ethereum from a proof-of-work (PoW) to a proof-of-stake (PoS) blockchain, slightly over 3 million ethereum has been minted. If The Merge had not taken place, the network would have generated 6.5 million ether. Furthermore, if Ethereum had remained a PoW blockchain without implementing EIP-1559, an additional 9.9 million ETH would have been added to the existing 120 million ETH in circulation.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.