3.5 Million ETH Has Been Burned, Worth $6.5 Billion - 2 Years After EIP-1559 Introduced

Yesterday, the Ethereum chain reached the milestone of 3.5 Million Ether burned. This amount is currently worth over $6.5 Billion. There is roughly 120 Million ETH in existence, and the burned Ether is equivalent to 2.92% of the current supply.

EIP-1559, which introduced this burning mechanism, was released on August 5th, 2021, almost 2 years ago. It took 724 days to reach 3.5 Million ETH burned. The rate of burn was at its highest in the first 6 months after EIP-1559, with 1.6 Million burned, it slowed down over the next 6 months to 0.87 Million ETH burned, and lowered again over the next 6 months to 0.43 ETH burned. Since then, the rate has increased slightly, with around 0.51 ETH burned in the 5.5 months since we reached 3 Million ETH burned.

Though it is possible to see 4 Million ETH burned in 2023, at the current rate we could reach this milestone by the beginning of 2024. It is important to note that when we reached 3 Million ETH, the supply of ETH was 122 Million, whereas now we are at the lower number of 120 Million. This is the first deflationary half-year period we have seen.