Over 700,000 ETH Destroyed, Ethereum Could Head For Deflation

The Ethereum 2.0 Altair Beacon Chain update had a successful start, with 98.7% of nodes upgraded at the time. This marked an important step towards the ‘Merge’, the transition to a Proof-of-Stake (PoS) consensus mechanism.

At the current burn rate, 50% of inventory will be destroyed

Since July, Ethereum has also undergone major upgrades such as the London hard fork. This update included a deflationary burn mechanism for the asset as part of the network’s fee structure.

ETH and its burn mechanism has come a long way since the last update. According to Etherchain, Ethereum has 10.06 ETH . every minute for the past 24 hours destroyed, worth approximately $42,895. In total, it has destroyed about 701,630 ETH at the time of writing. This is roughly equivalent to $3 billion.

Other similar platforms have demonstrated the same. For example, Ultrasound.money, an ETH supply tracking site came to the same insights. The NFT marketplace OpenSea is responsible for destroying most ETH. Here, 91,172 ETH worth more than $398 million has been destroyed so far. This is the list of others:

Source: Ultrasound.money

The decentralized exchange (DEX) Uniswap (version 2) with a total of 51,331 ETH worth over $230 million also falls into this category. NFT and DeFi are also the two main use cases of Ethereum right now.

Obviously, the amount mentioned above amounts to billions of dollars. The Chinese journalist Wu Blockchain for example tweeted like this:

It mentioned report highlighted the key features related to the token. It stated the following:

“Ethereum’s current burn rate is about 5 ETH/min, and the average burn rate of a single block remains above 1.1 ETH. Ethereum’s annual new supply is 5 million, which means that at the current burn rate, more than 50% of the new supply will be destroyed. If ETH1.0 and ETH2.0 are successfully merged, Ethereum could be heading towards deflation.”

Institutional Adoption

A number of other parameters have impacted Ethereum’s performance in recent times. In addition to the above points, institutional adoption a crucial role.

12 Ethereum securities products contain a total of 1.4294 million ETH, valued at more than $5 billion. This accounts for 1.23% of the Ethereum market cap, according to the report. CoinShares Ether Tracker Euro, an Ethereum securities product under CoinShares, had nearly 380,000 ETH and ranked first in Ethereum securities products.

Source: OKLink

In addition, pro-ETH analysts have maintained their optimistic stance regardless of certain consolidation periods.

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