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.

Related

FTX Launches Stock And ETF Trading Option In The United States 

A prominent cryptocurrency exchange, FTX, is getting into the stock trading business. Soon, its users will be able to trade equities and exchange-traded funds on the platform.  Only A Few Users In The United States To Enjoy The Service  The Wall Street Journal reports that the firm Sam Bankman-Fried helped establish and serve as its […]

Major Australian Bank Shelves Crypto Launch Plan

CBA’s Crypto App Plan As previously mentioned last year, Australia’s biggest bank disclosed plans to let its users carry out crypto-related transactions on its app.  It has been taking its plan to develop the project but as not stated a particular time it will finally launch the project to the public. It also has plans […]

Crypto Investors Suffer from Lingering Fears

The Situation at Hand The drastic drop and decline that befell the digital asset market last few weeks have left a mark on the users and investors of crypto, with crypto coins and other assets experiencing their lowest of lows and even stablecoins being affected, it’s no surprise that both old and new investor is […]

Cardano (ADA) Whales on Panic Selling Mode: Here’s Why

  Cardano’s price appears to hold the line following the 57% slump to $0.384. Nevertheless, the immediate obstacle at $0.677 might limit further recovery by ADA. A daily candle closing beneath $0.397 will annul the already precarious optimistic tale. Cardano sees its price staying well beyond the latest swing low that printed a possible bottom […]

European Regulators Concerned Over Terra Price Crash

The Recent Terra Drop Portrays Private Instruments as Just an Illusion Panetta in a statement noted that recent developments in the crypto industry show that believing in the usage of private instruments as money is just an illusion, since they cannot be exchanged at the same value as public funds at any time. He also […]