Ethereum network burns $395K ETH per hour after London upgrade
At current burn rates, 2.3 ETH per minute, or $6,600 is going up in smoke. Approximately 2.3 ETH is being burnt every minute through the new transaction fee mechanism introduced in Ethereum’s London upgrade on August 5. The highly anticipated London hard fork went live on Wednesday this week, ushering in the EIP-1559 upgrade that adjusted gas fees. Part of that adjustment introduced a mechanism that burns some of the base fees collected.
The total amount of ETH burnt since the upgrade went live around 14 hours ago is roughly 3,395 ETH according to the various counters available. Etherchain reports an average burn rate of 2.36 ETH per minute. This equates to $6,596 per minute, or around $395,000 of ETH going up in metaphorical smoke every hour at current prices.
An alternative counter called Ultrasound.money reports a total burn of 3,390 ETH worth a whopping $9.5 million at the current ETH price around $2,800. The tracker reports that the popular NFT marketplace OpenSea is the top ETH burner with 374 ETH, or just over $1 milliondollars, destroyed since the upgrade was launched.
In second place was Uniswap’s version 2 which had burned 263 ETH, or $740,000, at the time of writing. Uniswap founder, Hayden Adams, commented on the burn rate stating that if things continue at the same rate, the protocol could burn as much as 350,000 ETH, or almost $1 billion per year.
The Bankless DeFi newsletter threw around some figures in an attempt to predict the impact on future supply. Since the base fee is anywhere between 25% and 75% of the total transaction fee, manual calculation and predictions are difficult.
It modeled burn rates within this range using data on fees generated in 2021 and concluded: “Annualizing these figures, this means that between 800,000 — 2.4 million ETH is projected to be burned in 2021.”
When combined with the reduction in block reward issuance from the merge to proof-of-stake, the fee burning could lead to Ethereum having a deflationary supply, which would see it fulfill the increasingly used meme of “ultrasound money”.
Top Cryptocurrencies with Price Predictions
| # | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
| 1 |  BTC |
Bitcoin predictions | 71.6% | 59 | $103 090.04 | 7.54% | 7.84% | $2 040 210 476 450 |  |
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|---|---|---|---|---|---|---|---|---|---|---|
| 2 |  ETH |
Ethereum predictions | 73.2% | 57 | $3 836.90 | 4.67% | 6.55% | $462 123 587 518 |  |
|
| 3 |  USDT |
Tether predictions | 91.6% | 1 | $1.000611 | -0.01% | -0.02% | $135 773 947 858 |  |
|
| 4 |  XRP |
XRP predictions | 60% | 90 | $2.25 | -11.83% | 53.63% | $128 425 622 061 |  |
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| 5 |  SOL |
Solana predictions | 70.8% | 62 | $233.16 | -1.99% | -2.99% | $110 833 879 897 |  |
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| 6 |  BNB |
Binance Coin predictions | 85.2% | 25 | $714.72 | -5.07% | 9.56% | $102 925 874 853 |  |
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| 7 |  DOGE |
Dogecoin predictions | 61.2% | 77 | $0.438799 | 5.41% | 6.97% | $64 533 538 083 |  |
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| 8 |  ADA |
Cardano predictions | 58% | 87 | $1.18 | -2.83% | 17.06% | $41 330 413 929 |  |
|
| 9 |  USDC |
USD Coin predictions | 91.6% | 1 | $0.999875 | -0.01% | 0.01% | $40 710 275 845 |  |
|
| 10 |  TRX |
TRON predictions | 76% | 48 | $0.315468 | -19.00% | 57.65% | $27 219 987 446 |  |
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| 11 |  AVAX |
Avalanche predictions | 61.6% | 86 | $50.93 | -2.17% | 17.89% | $20 846 497 893 |  |
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| 12 |  SHIB |
SHIBA INU predictions | 72.4% | 51 | $0.000031 | 4.01% | 20.77% | $18 338 952 316 |  |
|
| 13 |  TON |
Toncoin predictions | 65.2% | 78 | $6.75 | -1.91% | 6.74% | $17 203 006 453 |  |
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| 14 |  DOT |
Polkadot predictions | 54.8% | 91 | $10.25 | 2.52% | 24.55% | $15 631 722 248 |  |
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| 15 |  LINK |
Chainlink predictions | 57.2% | 88 | $23.58 | -1.83% | 30.47% | $14 783 602 206 |  |
