According to Ultrasound Money’s “burn leaderboard,” OpenSea is the largest source of Ethereum burned since the EIP-1559 London hard fork.
OpenSea is ranked first on the burn leaderboard, having burned a total of 28,238.26 ETH since EIP-1559 at the time of writing. All ETH transfers processed on the Ethereum network come in second, with a total of 15,205.90 ETH — 46.15 percent less than OpenSea.
When you include the amount of ETH burned by OpenSea’s registry, which is listed separately at number nine (2,561.67 ETH), this means that OpenSea has burned a total of 30,799.93 ETH, which is more than double the amount of ETH burned by all standard Ethereum transfers combined.
London is on fire.
EIP-1559, also known as the ‘London’ hard fork, is an Ethereum network upgrade that went live on August 5, 2021. London introduces several new features, including a method of addressing the network’s significant scalability issues, which have plagued it exponentially as utilization increases. Users and developers are particularly concerned about the volatility and inflation of network transaction fees.
London attempts to make these fees deflationary by reducing transaction fees and validator rewards by removing between 25% and 75% of the base fee associated with each transaction made on the network previously offered to miners. This new fee-burning procedure is carried out on a daily basis.
When we last reported on this burning process, there had been 73,569 ETH burned since the upgrade. As of this writing, the total number of ETH burned had risen to 178,808, with an average of 58,924 ETH burned per day.
This is part of a larger push by the Ethereum team to adopt ETH 2.0, which abandons the Proof-of-Work (PoW) model in favor of an alternative consensus mechanism known as Proof-of-Stake (PoS). PoS completely eliminates transaction fee volatility and scalability issues by replacing the resource-intensive ‘mining’ validator process with a more democratic form of network governance. This process rewards randomly chosen quorums of validators based on the amount of tokens staked on the network.
The NFT craze is at the top of the Ethereum charts.
Other top burners include Tether, Axie Infinity, Uniswap V3, and Metamask, as well as Uniswap V2, which has burned a total of 11,011.20 ETH to date.
This is not surprising given the ongoing non-fungible token (NFT) craze’s dominance. This is a craze in which OpenSea is a key player and proponent as a marketplace for the trading of NFTs.
In fact, BeInCrypto (BIC) is currently hosting its anniversary charity NFT auction on OpenSea. The limited four-day BIC Charity NFT Auction raises funds for the Open Earth Foundation (OEF) by auctioning off unique digital artwork. The Open Earth Foundation (OEF) is a non-profit that promotes “open digital infrastructure” for Earth system management.