Year-to-date value gains for Ethereum had surged by more than 450%. Even on 5th August, Ethereum was able to successfully deploy the most hyped fork called “London Fork” but since then has burnt Ether coins worth more than US$ 5 Billion.
Some four months ago, exactly on 5th August 2021, Ether was able to launch the most anticipated “London Fork”. It was an upgrade that set up new rules and standards for the Ethereum network. Amongst those newly added rules and standards was known as EIP-1559 which in turn provided for ‘fee rate scheme’. Through this ‘fee rate scheme’, the network of Ethereum was able to burn a huge quantity of Ether coins.
However, from 5th August to date, Ethereum has burned more than 1.28 million coins. This meant that Ether coins worth more than US$ 5 Billion have been destroyed completely during the burn process. In addition, Ethereum has also lost 1.28 million Ether coins from circulation.
Most of the Ether coins were burnt by an Ethereum project called “Opensea”, which is an NFT project. Opensea alone burnt approximately 134,126 coins out of over 9 million transactions. This meant that Opensea single-handed destroyed Ethereum assets worth approximately US$ 500 Million. On the other hand, approximately 122k Ether coins were ultimately burnt by Ethereum network users during the process of transfer. The loss of 122k Ether coins accounts for roughly more than US$ 480 Million. Uniswap V2 also contributed to the loss of US$ 457 Million as the decentralized exchange of Uniswap burnt 112,159 Ether coins. Another loss of US$ 167 Million was caused by Uniswap but this time it was V3 of Uniswap which too burnt approximately 42,000 Ether coins.
USDT, which is a stablecoin, also contributed a major loss for Ethereum. The stablecoin single-handedly burnt Ether coins worth more than US$ 268 Million.
These were all the five major Ethereum burners that are contributing extensively to the Ethereum economy. However, it was after the launch of London Fork that although the burners did a great job, yet they also destroyed billions of dollars worth of Ethereum. The total loss accumulated by the Ethereum network since 5th August 2021 till to date exceeds an amount of US$ 5 Billion. If these Ether coins had not been burnt, they would have added at least US$ 5 Billion into the Ehtereum’s market valuation.
In any case, considering the 450% value gains since day one of 2021, the loss has been made up. However, Ethereum’s network is regarded as the best network in the crypto universe. It is even far better than the network of Bitcoin as well. Yet succumbing to huge losses of US$ 5 Billion seems absurd for most of the experts.
As compared to other networks, Ethereum has been burning more than 4 million coins every year. It is an alarming situation that needs to be controlled.