Daily ETH Burn Sets New Peak Record

Until the implementation of EIP-1559 during the London hard fork of august 2021, ETH users couldn’t pay fees using burned Ether.

Implementing EIP-1559

But since the implementation of the EIP-1559, burning ETH has been a custom among ETH users. It has to be noted that ‘burning ETH’ is an act of reducing ETH supply permanently. Theoretically, the goal is to reduce the ETH supply in circulation – one of the objectives of the London hard fork. As DeFi platforms and NFT transactions rise in growth and popularity, ETH burning has surged to new highs. 

However, the latest Watchtheburn statistics show that ETH burned on January 10 is the highest ever in one day. The total ETH amount burned on that day was 19,425, which was higher than the 16,500 ETH burned on October 16 last year.

Daily burned ETH. Source: watchtheburn

The Rising Popularity Of NFT Platforms And ETH Burning

A graphical statistic shared by Alex Svanevik on Twitter revealed that DeFi and NFT platforms contributed the highest amount of ETH gas fees last year. Svanevik is the chief executive of Nansen, an on-chain analytics platform focusing on Ethereum analytics. Also, a Defiant data showed that nearly 2,800 ETH was burned on the popular NFT platform (OpenSea) between august and December 2021. The data further showed that the same platform consumed the second-highest gas last year.

ETH gas consumed. Source: Nansen

A Dune analytics data also showed that this month is OpenSea’s busiest month in NFT transactions. Thus, it makes its burned ETH reach new record highs even though the month isn’t over yet. The graphical statistics above show the growth rate in OpenSea’s gas consumption which can be used to estimate amounts of ETH burned since that time.

OpenSea monthly NFT transactions. Source. Dune.xyz

Hence, it can only be assumed that the new peak record for the amount of burned ETH will soon be broken as there is still room for significant growth in the NFT and DeFi space over the coming years. Despite ETH’s huge gas fees for transactions, there would still be an increase in DeFi and NFT platforms using the ETH blockchain. Hence, increasing the possibility of a higher amount of ETH being burned.

Ethereum’s Network Growth And ETH Price

ETH price has dipped by nearly 3.9% over the past 24 hours, and it keeps struggling at the $3.2k level. Some analysts opined that economic news might have been responsible for the decline in ETH price. Nevertheless, Santiment data has revealed that there has been a depletion in the network’s growth over the past three months.


However, the data revealed that ETH’s ‘bad’ price-performance isn’t affecting its daily active addresses. Crypto analysts determine the activeness of any network based on its daily active addresses (DAAs) because an increase in blockchain usage is a result of rising DAAs. Furthermore, a decreasing supply of ETH on exchanges despite the poor price performance indicates that some investors are increasing holdings.    

Leave a Reply

Your email address will not be published.


What is Copy Trade and How It Works?

Copy Trade Intro Copy trade or copy trading is a type of trading in which one trader (the “follower”) automatically copies the trades of another trader (the “leader”). This is done through a copy trading platform, which connects the follower and leader and allows the follower to automatically copy the leader’s trades in real-time. How […]

Be The Bank Review, btb.inc – Is BeTheBank Scam or a Good Broker?

Be The Bank Review Be The Bank Rating 4.7 Summary Read our Be The Bank review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is bethebank scam or legit” and much more! We have checked all the aspects of this broker and we recommend BeTheBank for online trading. It […]

Coins Capital Review, Coins-Capital.com – Is Coins Capital Scam Or Legitimate?

Coins Capital Trading Platform Rating 4.3 Summary Read our Coins Capital review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is Coins Capital scam or legit” and much more! https://coins-capital.com/ Coins Capital Review You have been thinking for a long time if trading is for you. You have finally […]

AI Center Indicts ChatGPT Developer of Trade Law Violations: Claims Bias & Deception

The organization alleges that the creator of ChatGPT has violated Section 5 of the Federal Trade Commission Act with the release of GPT-4. This section of the act prohibits any practices or acts considered deceptive or unfair and that affect commerce. CAIDP has complained to the US Federal Trade Commission, intending to prevent the distribution […]

Investors Excited As XRP Market Capitalization Hits $20 Billion

It’s been wide jubilation today after XRP investors heard the announcement that the market capitalization has surged to $20 billion. XRP: a cryptocurrency developed and managed by Ripple, a San Francisco, United States, distributed data company. It was gathered that the coin itself responded to this development through a climb in price – it was […]