The London hard fork, which introduced Ethereum Improvement Proposal (EIP) 1559, has been a game-changer for the Ethereum network.
One of the most significant outcomes of this update is the continuous burning of the base fee component of transaction fees.
Since the implementation of EIP-1559, more than 3.46 million ether have been burned, amounting to a staggering $6.68 billion in destroyed value.
EIP-1559 has paved the way for Ethereum’s deflationary strategy, gradually reducing the total supply of ETH. Among the burned ether, nearly 300,000 ETH can be attributed to regular transfers.
Additionally, NFT transactions on platforms like Opensea have burned over 230,000 ether, while Uniswap v2 accounts for approximately 200,000 ether burned.
Tether transactions have also contributed to the burning process, with over 150,000 ETH destroyed in these transactions.
Uniswap versions 3 and 1 have collectively burned more than 200,000 ETH. Currently, there are 120,201,621 accounts holding approximately $232.53 billion worth of ETH.
Since the activation of EIP-1559, a little over 3 million ether have been newly created. However, if the Ethereum network had not transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) blockchain through The Merge on September 15, 2022, the network would have generated around 6.5 million ether. This shift has resulted in a reduced total supply, with 120 million ETH currently in circulation.
