Ethereum (ETH) burning was introduced with EIP-1559, and thousands of ETH have been taken out of circulation since then. ETH burning continues in an attempt to make the cryptocurrency deflationary and has succeeded in some blocks.
Given the number of ETH burned every hour, here is how many ETH are expected to be burned yearly.
With each block, new ETH is released into circulation, and at the current issuance rate, 603,000 ETH are expected to be added each year. Before introducing burning, this would have increased the number of ETH in circulation, but it no longer does.
Over the past few months, Ethereum burning has grown, and 835,000 ETH are expected to be burned yearly. It is significantly more ETH than is in circulation. Thus, more coins will leave circulation for the first time since the network launch than those entering.
The issuing speed has also become much slower since the network switched from a proof-of-work (PoW) mechanism to a proof-of-stake (PoS). Previously, it issued over 4 million tokens yearly, and the move to PoS has reduced the amount by over 60%.
One of the issues plaguing Ethereum was the number of new tokens that were floated this year. When the network still used proof of work, new tokens were introduced at a rate of 3.66% each year, and it was very high compared to the BTC emission rate, which was 1.72%. The move to PoS, however, changed things. After the update, the ETH emission rate decreased significantly. New tokens are now introduced at a rate of 0.07% each year, substantially less than that of Bitcoin, which remains its biggest competitor. The merger was completed a month ago, and if the network were still in PoW mode, it would have put 353,000 ETH into circulation in that period. But the change in the mechanism added only about 7,000 ETH.
At this time, more than 14.3 million coins have been staked in Ethereum’s staking protocol. Since the introduction of EIP-1559, a total of 2.66 million ETH has been burned so far. ETH transfers take the lead in most tokens burned, while OpenSea is in second place.
|#||Name||Circ. Supply||Supply 24h MAVDA||Supply 7d MAVDA||Supply 30d MAVDA|
|2||Ethereum||120.52 M||120.52 M||120.52 M||120.71 M|
As you can see, for the last month, the Circulating Supply of Ethereum has dropped by around 190,000 – approximately a 0.15% drop. If this continues, we can calculate around ~ 0.69785%, which will put Ethereum Supply in one year around 119.67 M.
That is just a current representation and simple calculation based on data around the time this article was written. Nothing on those numbers should be considered an exact amount but more like a direction based on averages.
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