$1 Bln In Ethereum Burnt In Past 30 Days Due To OpenSea NFT Transactions.

$1 Bln In Ethereum Burnt In Past 30 Days Due To OpenSea NFT Transactions.

2022-02-02 | Selina Mathew

$1 Bln In Ethereum Burnt In Past 30 Days Due To OpenSea NFT Transactions.

As per Nansen Analytics blockchain data released recently, approximately $1.096 billion of Ethereum (ETH) has indeed been burnt in the last month. With the implementation of EIP-1559 past August, a part of fees for each transaction on the Ethereum blockchain is removed from circulation. Whilst transmitting as well as receiving ETH is very inexpensive, higher-level actions, like minting nonfungible tokens, or NFTs, via smart contracts, need far more gas.

The overall number of NFT transactions on OpenSea reached an all-time high of $3.5 billion in January. With 65,778 ETH ($181.7 million) burned in the last 30 days, it presently ranks first on a burn scoreboard maintained by UltraSound Money.

Token burning from Ethereum transactions as well as factivity on decentralized exchange Uniswap (UNI) came in second and third place, with 35,696 ETH ($98.6 million) as well as 24,223 ETH ($66.9 million), correspondingly.

Nevertheless, Ethereum remains an inflationary blockchain network, with an annual supply of 5.4 million ETH above the 3.5 million ETH consumed. The quantity of ETH will maximum only once it has transitioned from proof-of-work to proof-of-stake or PoS.

When this occurs, the overall number of new releases would be fewer than the entire amount of token burns, leading to a net deflationary network. The "merge" PoS shift will take place in the second or third quarter of this year. Nevertheless, the network's overall hash rate has previously reached a new all-time high. In its recent rebranding, the Ethereum Foundation dropped the Eth 2.0 moniker. It is currently known as the consensus layer.

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