In a Twitter post published on Wednesday, the blockchain research company CryptoRank revealed that more than 1 million Ether (Ethereum) (Worth US$4.24 billion) has been burned since its introduction in August as part of the EIP-1559 protocol London hard forkThe EIP-1559 protocol reforms the Ethereum fee market, modifies the gas fee limit, and introduces the destruction function, which removes part of the transaction fee on the blockchain from circulation and permanently cancels it.
Well-known decentralized applications responsible for the contribution of token destruction include Popular non-fungible token, or NFT, Platform OpenSea.io and play games to earn NFT game Axie Infinity. Secondly, the trading volume of decentralized exchanges such as Uniswap, 1inch and Sushiswap accounted for a large part of the ETH burn. When transferring from stablecoins such as Tether, ETH will also be destroyed (USDT) And U.S. dollar coins (USDC) Built on the Ethereum blockchain. Finally, wallet users in MetaMask and users who conduct regular ETH transactions also contributed to network activities.
— CryptoRank platform (@CryptoRank_io) November 24, 2021
according to According to data from Ultra Sound Money, 7.67 ETH is burned every minute, and up to 11,042 ETH is burned every day. At the current rate, approximately 4 million ETH are burned every year. However, the blockchain currently emits about 5.4 million ETH annually. Therefore, the Ethereum network is still at a level of net inflation.
When Ethereum 2.0 is upgraded and launched next year, all of this will change, changing the network from Proof of Work Consensus and Proof of Stake Consensus, The staking reward will be much lower than the mining reward. As a result, it will reduce the blockchain’s emission rate far below its burn rate, thereby creating a deflationary ecosystem. Ultra Sound Money predicts that the peak supply of ETH will reach 119.7 million in early 2022 and then begin to decline.