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According to blockchain data from Nansen Analytics on Tuesday, more than $1.096 billion worth of ethereum (Ethereum) was burned within the past month.With the introduction of EIP-1559 last August, part of the fee is out of circulation For every transaction that happens on the Ethereum blockchain. While sending and receiving ETH is not expensive, higher-level tasks, such as minting non-fungible tokens or NFTs via smart contracts, are much more expensive.
In January, the total volume of NFT transactions on OpenSea reached an all-time high of $3.5 billion. It is currently number one on the burn chart compiled by Ultra Sound Money, with 65,778 ETH ($181.7 million) burned in the past 30 days. In second and third place are token burns from Ethereum transactions and the fact that they are on the decentralized exchange Uniswap (Unite), 35,696 ETH ($98.6 million) and 24,223 ETH ($66.9 million), respectively.
However, Ethereum is still an inflationary blockchain network; the current 5.4 million ETH issued per year exceeds the 3.5 million ETH burned. The supply of ETH will peak only after its proof-of-work mechanism is removed by transitioning to proof-of-stake or PoS.
Once this happens, the total amount of new emissions will be less than the total amount of tokens burned, resulting in a net deflationary network. The PoS transition, known as a “merger,” will happen in the second or third quarter of this year.However, until then, the total hash rate of the network still managed to reached a new all-time high. The Ethereum Foundation recently Dropped the Eth 2.0 name in its rebranding. Now called the consensus layer.
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