Ethereum turned Inflationary in 2024 for the first time since 2022 according to an update from CoinGecko.
CoinGecko‘s latest report has looked into just how much ETH has been burned. As of August 5, 2024, the Ethereum network has “burned a total of 465,657 ETH since the start of the year.”
CoinGecko further noted that after the implementation of EIP-1559 in June 2021, “a total of 4.36 million ETH have been burned.” Meanwhile, 107,725 ETH were “burned in 2024 Q2, a -67.7% drop from Q1. In 2024 Q1, 333,555 ETH were burned.”
CoinGecko also mentioned that in July 2024, 17,114 ETH were “burned, marking a monthly all-time low in 2024, and a -35.0% decrease from June.”
Meanwhile, 147,620 ETH were “burned in March 2024, representing a monthly all-time high in 2024. However, this figure is a far cry from the all-time high of 398,061 ETH burned in January 2022, at the height of last cycle’s bull market.”
CoinGecko also addressed whether Ethereum is inflationary or deflationary. According to the research study, Ethereum is now “inflationary despite being deflationary between 2022 Q4 – 2024 Q1. ETH emissions have outpaced burns, with 540,958 ETH added to the network since the start of 2024. Meanwhile, 465,657 ETH have been burned, resulting in a net total of 75,301 ETH added to the network in 2024.”
GoinGecko also mentioned that on a quarterly basis, 2024 Q1 was “deflationary, with 220,454 ETH emitted and 333,555 ETH burned.”
CoinGecko pointed out that this resulted in “the removal of 113,100 ETH from Ethereum’s supply.”
However, as network activity fell throughout 2024 Q2, Ethereum became inflationary.
Throughout the quarter, 228,543 ETH were “emitted versus 107,725 ETH burned, with 120,818 ETH added to the blockchain.”
The research report added that Uniswap remained “the largest burner of ETH, having burned a total of 71,915 ETH in 2024; a total of 2,470 ETH was burned on Uniswap in July 2024.”
While Uniswap has been the “dominant ETH burner, a sharp drop in ETH burns has been observed.”
Its burn rate “dropped -72.4% Quarter-on-Quarter (QoQ) to 15,031 ETH in Q2, from 54,413 ETH in Q1.”
The top 10 ETH burners “accounted for 39.2% of all ETH burned in 2022.”
ETH transfers were the “second largest contributor to ETH burns, having burned 33,538 ETH year-to-date.”
In Q1, ETH transfers “burned 25,668 ETH, before dropping to 6,838 ETH in Q2, a decline of -73.4% QoQ.”
CoinGecko also noted that Tether (USDT) was “the third largest burner, having burned 23,332 ETH in 2024. Like Uniswap and ETH transfers, its burn rate dropped -70.9% QoQ to 5,091 ETH in Q2, from 17,480 ETH in Q1.”
The fourth largest burn contributor “was Banana Gun (BANANA), with 11,060 ETH burned.”
The Telegram trading bot “burned 2,150 ETH in Q2, down 74.3% from Q1 (8,364 ETH).”
A slump in DEX trading “on the blockchains it supports has impacted its burn rate.”
The remaining protocols in “the top 10 burned less than 10,000 ETH each.”
Methodology
The study shared by CoinGecko examined the amount of Ethereum (ETH) emitted and “burned in 2024, using Dune Analytics, and Etherscan data from January 1, 2024, to August 5, 2024.”
The study also examined the “top ten methods that burned the most ETH: Uniswap, ETH Transfers, Tether, Maestro, 1inch, MetaMask, Circle USD, MEV Bots, and Scroll.”