Ethereum Network Burns Up to 1.8 Million Coins in 2022 Even so, the pace of the process appears to have slowed in the second quarter as the cryptocurrency’s second-largest market capitalization declined, according to a ForkLog analyst report.
Dynamics of ETH’s daily burn numbers. Data: ForkLog.
Since the activation phase of EIP-1559, the Ethereum network has withdrawn nearly 2.8 million ETH.
The maximum number of coins (~254, 000 ETH) were withdrawn from the profession in user-to-user transactions; the OpenSea and Uniswap v2 protocols on the NFT marketplace took second and third place with 230, 000 ETH and 145, 000 ETH respectively.
In the fall, the blockchain creators switched to the Proof-of-Stake consensus method: in the phase from September 2022 to January 2023, the issuance of assets increased by 3, 146 ETH. Had the network continued to use proof-of-work, that number would have exceeded 1.38 million ETH.
Over the year, the share of cryptocurrency blockchains in smart contracts from decentralized applications was 25.62%. During the reporting period, significance dropped by almost 4%. 12 months, the total size of Ethereum in centralized platform accounts decreased by 14.5%.~19.3 million ETH.
Ethereum balances out with its share of ETH supply on centralized exchanges and smart contracts. Data: fork logs.
These dynamics are not only the result of a prolonged market correction, but also of a “black swan” undermining traders’ confidence. The former suffered the collapse of the Terra ecosystem and the latter the collapse of the virtual currency exchange FTX.
Entering 2022, the number of validators on the Ethereum network increased by 79%, reaching 495, 252 at the end of December. Stacking assets exceeded 1, 585 million ETH, and asset inflows during the 12-month period were~7 million coins.
Total ETH in stacks and number of validators in the network. Data: fork logs.
As a reminder, the Ethereum team plans to activate the Shanghai hard fork around March 2023. This update will connect EIP-4895 and allow ETH to pull from the beacon chain stacking contractfailed and load all totals.