According to the “Burn Leaderboard” published by Ultrasound Money, OpenSea is the largest source of Ethereum burned since EIP-1559 London Hard Fork.
OpenSea is number one by far
OpenSea is ranked #1 and at the time of writing the NFT marketplace has burned a total of 28,473.27 ETH since EIP-1559. Second place goes to all ETH transfers processed on the Ethereum network. These total 15,367.34 ETH, which is almost 50% less than what OpenSea has done.
If you add the amount ETH burned by the OpenSea registry, which is listed separately in ninth place (2,576.21 ETH), OpenSea burned a total of 31,104.94 ETH, more than twice as much as all standard Ethereum transfers combined.
It is no surprise that OpenSea takes first place
It’s no surprise that OpenSea takes the first spot. The current NFT craze is catching the attention of a lot of market participants. According to DappRadar, OpenSea had more than $4 billion in volume in the last 30 days, and the platform recorded more than half a million transactions last week. Users of the marketplace are willing to pay high gas fees to buy or offer their NFTs.
Other top burners include Uniswap V2, which has burned a total of 11,069.20 ETH so far, as well as Tether, Axie Infinity, Uniswap V3, and Metamask.
Why is Ethereum getting burned?
EIP-1559, also known as London Hard fork, is an upgrade to the Ethereum network launched on August 5, 2021. The upgrade introduces several new features, such as fixing the significant scalability issues that have plagued the network as workloads increase. Examples include the volatility and inflation of transaction fees on the network that users and developers have faced.
The upgrade is attempting to make Ethereum a deflationary currency by lowering transaction fees and validator rewards by burning the fees the network previously offered to miners. This new fee-burning process is taking place daily.