The recent execution of EIP-1559 on Ethereum has seen $11 billion in ETH destroyed, which has now surpassed the market capitalization of every individual crypto asset outside the elite top 10.

In Brief

Following the launch of EIP-1559, approximately $11 billion in ETH has been incinerated, exceeding the total market cap of cryptocurrencies ranked lower than the top 10.

Since the Ethereum Improvement Proposal EIP-1559 took effect in 2021, modifications aimed at better handling transaction fees have led to around $11 billion in ETH being burned, as noted by Sassal, the founder of a platform tracking Ethereum fees called The Daily Gwei. When excluding stablecoins and stETH from the top 10, the burned ETH’s dollar value is greater than the market cap of any asset outside of that status. stablecoins Since the deployment of EIP-1559, approximately $11 billion worth of ETH has been incinerated.

When you disregard stETH and stablecoins from the top list of cryptoassets, the amount of ETH that has been burned outstrips the market capitalizations of all cryptoassets positioned outside the top ten.

Simultaneously, post-Merge implementation in 2022, which marked Ethereum’s shift to a proof-of-stake system, has led to the minting of 1,047,643 ETH (worth about $3.05 billion), while 1,407,200 ETH has been burned, resulting in a net reduction of 359,557 ETH, or approximately 0.209% year-on-year.

Insane!

— sassal.eth/acc 🦇🔊 (@sassal0x) February 20, 2024

This reduction points towards a deflationary trend driven by Ethereum’s strategy of burning a portion of the transaction fees collected from validators. Ultimately, the Merge transitioned from miners to validators, thereby significantly decreasing the ETH supply available in the market. Ethereum Ethereum, the second-largest cryptocurrency, has shown a notable uptick in performance recently, leading analysts to predict that this positive trend may persist.

ETH has seen a substantial rise of over 16% within the last week, crossing the $2,900 mark—its highest value in almost two years. Comparatively, Bitcoin’s price has seen a gentler climb of 8.5%, reaching $52,300, based on CoinMarketCap’s data.

Ethereum’s Robust Performance

While there is considerable buzz around the anticipated developments in April, the steady decrease in ETH supply since September 2022 is equally important to note. Despite the low ETH/BTC trading ratio, there’s a strong demand for Ethereum, and its fundamental supply forecast appears to be much more favorable than Bitcoin’s, according to Greg Magadini, who serves as the Director of Derivatives at Amberdata.

The notable decrease in ETH supply, along with other key factors like the upcoming launch of a spot Ethereum ETF later this year, suggests that the current narrative surrounding ETH supply is incredibly optimistic, potentially indicating robust performance for Ethereum in the foreseeable future.

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