Per data by Ultrasound.money tracker, more than 20,000 ETH have been destroyed on Ethereum’s network, less than a week of activation of the highly anticipated London Hard Fork upgrade, which comes with a new fee-burning mechanism, giving analysts an estimation of a $5 billion yearly burn rate.
So far, between 25 percent to 75 percent of the base fee has been destroyed, which could result in the Ethereum network becoming a deflationary form of “ultrasound money” once its transition to proof-of-work goes live.
OpenSea NFT market remains among the top Ethereum-based platforms for burning fees. It has burned 735 ETH, worth $2.3 million at today’s price. It is followed by Uniswap v2, with 348 ETH, and Axie Infinity, an NFT platform that has burned 318 ETH, worth $1 million at today’s price.
Etherchain’s report of burn rate states that the network burns 3 ETH per minute. By estimation, this will amount to 4,320 ETH daily, approximately 30,240 ETH per week, and 131,000 per month. However, the yearly burn rate could be 1.57 million ETH, worth nearly $5 billion at current prices.
These figures are assumptions, as fees will change with demand. The prices could go higher by the ETH demand.
It is worth noting that staked ETH at the moment is above 6.8 million ETH, worth approximately $21 billion at current prices.
This “ultrasound money” narrative has been reflected in ETH prices which have way outperformed bitcoin this year. At the time of press, the asset was trading up 5 percent on the day at $3,115.