ETH “Firing” Away
Market Meditations | February 3, 2022
You may recall the most recent “update” to Ethereum from last year: the EIP-1559 protocol. According to Nansen Analytics, there has been $1.096 billion worth of Ethereum burned in the past month thanks to this protocol.
EIP-1559 takes a portion of all fees out of circulation for every transaction that occurs on the Ethereum blockchain by burning these coins.
Let’s take a look at some of the specifics from this last month!
- OpenSea (NFT marketplace) had an all-time high volume of $3.5 billion in January.
- From OpenSea, there were 65,778 ETH ($181.7 million) burned.
- In second and third place were ETH transactions and on UNI, burning 35,696 ETH ($98.6 million) and 24,223 ETH ($66.9 million) respectively.
As a reminder, Ethereum is still currently an inflationary blockchain network. Currently, there is roughly 5.4 million ETH issued and 3.5 million burned. There will be a proof-of-work to proof-of-stake transition that will occur in the second or third quarter. When this happens, the total amount issued will be less than the tokens burned thus making it a deflationary network.
