EIP-1559 Implementation 365 Days: NFT Protocol Burn Amount Greater Than DeFi

The Ethereum London upgrade was successfully completed on the evening of August 5, 2021. With the implementation of EIP-1559, which changed the network fee structure and introduced a token burning mechanism, many people expected the circulating supply of Ether to decrease, leading to a price increase. Today marks the 365th day since the implementation of EIP-1559. A year ago, Ether was at the $2800 level, and as of the time of writing, Ether is at the $1600 level.

Let's take a look at the data performance over the past 365 days through the website "ultrasound.money," which compiles Ethereum deflation data.

Ethereum Supply Increases by 2.4% Annually

According to ultrasound.money, approximately 2.6 million Ether has been burned in the past 365 days, while 5.5 million Ether has been issued based on the PoW consensus, resulting in an overall annual increase of 2.4% in the total circulating supply of Ether.

4.89 Ether Burned Every Minute

Over the past 365 days, approximately 4.89 Ether has been burned every minute, offsetting 0.47 times of issuance.

NFT Burn Volume Surpasses DeFi

In various types of transactions, the amount of Ether burned by NFT activities surpasses that of DeFi activities, highlighting the rise of NFTs and the cooling off of DeFi in the past year, followed by MEV arbitrage activities and others.

OpenSea Burns More Ether Than Uniswap

Overall, the largest amount of burning from Ether transfers is seen in the Ethereum's largest NFT marketplace, OpenSea, with the DeFi exchange protocol Uniswap burning almost half of what OpenSea does.

Block Record

The blocks with the highest burning levels are concentrated in the top three positions from three months ago, which is May. The block with the highest burning is block #14688922, which burned a total of 220 ETH.