$ 1B worth of ETH burned in the last 30 days due to record high OpenSea NFT transactions

According to blockchain data from Nansen Analytics on Tuesday, more than $ 1.096 billion worth of Ethereum (ETH) was burned in the past month. With the introduction of EIP-1559 last August, a portion of fees is taken out of circulation for every transaction that occurs on the Ethereum blockchain. While sending and receiving ETH does not cost much, tasks at higher levels, such as minting non-fungible tokens, like NFTs, through smart contracts, cost much more gas.

In January, the total volume of NFT transactions on OpenSea reached a high of $ 3.5 billion. It currently ranks No.1 on a burn leaderboard compiled by Ultra Sound Money, with 65,778 ETH ($ 181.7 million) burned in the past 30 days. In second and third place were token burns from Ethereum transactions and factivity on decentralized exchange Uniswap (UNI), numbered 35,696 ETH ($ 98.6 million) and 24,223 ETH ($ 66.9 million), respectively.

However, Ethereum is still an inflation blocking network; The current expenditure of 5.4 million ETH per year is more than 3.5 million incinerated ETH. ETH’s offering will only peak after the removal of its proof-of-work mechanism through its transition to proof-of-stake, or PoS.

Once that happens, the total amount of new emissions will be less than that of token fires, resulting in a net deflationary network. The PoS transition, called “the merger”, will take place in the second and third quarters of this year. However, the overall hash rate of the network has still managed to reach a new all-time high. The Ethereum Foundation recently abandoned the Eth 2.0 name in its rebrand. It is now called the consensus layer.