Over 20,000 ETH have been lost since the Ethereum London upgrade went live almost a week ago, giving analysts an estimate of a yearly burn rate.
Last week, on August 5, Ethereum’s much-anticipated London hard fork went live. As part of a redesign of the gas auction system for transaction payments, it implemented a new fee-burning method.
The much-anticipated London hard fork of Ethereum went live last week, on August 5. It developed a new fee-burning approach as part of a reform of the gas auction system for transaction payments.
At the time , the amount of ETH burned during the previous five days was 20,600, according to the ultrasound.money tracker. That’s about $64 million burned in less than a week at today’s prices.
The OpenSea NFT marketplace, which has burned 735 ETH ($2.3 million) in fees, is currently the highest Ethereum-based platform for burning fees. Next, Uniswap v2 has burned 348 ETH, while Axie Infinity, another NFT platform, has eliminated 318 ETH, or nearly $1 million in transaction fees.
Etherchain is reporting a burn rate of 3 ETH per minute, based on a 24-hour average. Extrapolating this to a daily rate of 4,320 ETH, a weekly rate of 30,240 ETH, and a monthly rate of 131,000 ETH. On a yearly basis, this might result in the burning of 1.57 million ETH, or $4.9 billion at current pricing.
All of these estimates are hypothetical because fees fluctuate with network demand and pricing are not fixed. It does, however, provide a glimpse of current situations. These statistics might go substantially higher if Ethereum demand and prices rise in the next few years, which most analysts believe will happen.
A considerable portion of ETH has already been staked on the Beacon Chain, aside from trading, decentralised finance (DeFi), and non-fungible token (NFT) minting. These coins are locked up and unmovable until “the merge” in late 2022, when ETH 1.0 and the proof-of-stake blockchain are combined.
According to the ETH 2.0 Launchpad, there were 6.8 million ETH invested on the Beacon Chain. This is worth roughly $21 billion at current pricing, which is more than the entire Ethereum market value was in April 2020.