The London hard fork introduced the constant burning of ETH and now this burning of ETH is at record levels.
According to analysts, ETH burning has been driven by the growth of decentralized finance (DeFi) platforms and non-fungible token (NFT) trading.
ETH burn hits all-time high
According to the Watch the Burn portal, a total of 19,424 ETH was burned on January 10th of this year. This is a new record on the ETH blockchain.
This volume surpassing the previous all-time high of just over 16,000 ETH, reached in mid-October 2021.
As Alex Svanevik, CEO of Nansen, highlighted, the high burn rate is related to the growth in the use of platforms such as OpenSea and Uniswap.
On his Twitter account, the businessman showed some graphs in which it is observed that platforms such as Uniswap (in its versions 2 and 3), and OpenSea, were the ones that generated the most expenses with GAS in 2021.
In the case of OpenSea, although the platform ranked second as the one that consumed the most GAS in 2021, it was the one that recorded the most ETH burn in 2021 with 2,755 ETH destroyed. This has been since the activation of EIP-1559 in August.
Growing interest in NFTs has boosted activity on ETH. This brought with it the payment of fees by marketplaces, among which OpenSea, a market for selling collectible tokens, stands out.
In another analysis, Dune.xyz shows that the growth of OpenSea is precisely one of the biggest drivers of ETH burning.
The start of EIP-1559 took place in early August. As highlighted by Dune.xyz, the date coincides with the increase in transactions within the NFT buying and selling platform.
“This growth data since August shows how OpenSea recorded the highest commission gas burn in 2021,” the company highlights.
Furthermore, the company points out that these all-time highs in ETH burning are just the beginning. That’s because higher numbers will be seen:
“After reaching the aforementioned 19,000 ETH destroyed in one day, high levels of burning continue to be marked. This shows a high level of activity on this network, despite the high rates that ETH still records.”