1 MILLION ETH HAS BEEN BURNED SINCE THE IMPLEMENTATION OF EIP-1559 IN AUGUST

Last updated: June 19, 2025, 22:54 | Written by: Samson Mow

Imagine a world where your favorite cryptocurrency becomes scarcer, potentially increasing its value over time.That's precisely what's been happening with Ethereum (ETH) since the implementation of EIP-1559 in August.This pivotal upgrade introduced a mechanism to burn a portion of the transaction fees, effectively removing ETH from circulation. At the time of writing, it shows that 1,002,000 ETH have been burned since the London hard fork on August 5th. The network has proven capable of maintaining its high burn rate, which saw its first $1 billion destroyed within about a month. In that time, nearly 1.5 million Ether have been minted and distributed to miners as block rewards.The results have been striking: over 1 million ETH, worth billions of dollars, has been burned, signaling a significant shift in Ethereum's tokenomics.This event has sparked considerable debate and excitement within the crypto community, with many speculating about its long-term effects on the price and stability of ETH. Total ETH Burned So Far Since the activation of EIP-1559, Ethereum has burned a significant amount of ETH. Here s a breakdown of the key milestones: - August 2025 to December 2025: Within just a few months of EIP-1559 going live, over 1 million ETH were burned.This article dives deep into the impact of EIP-1559, explores the mechanics of ETH burning, and examines the implications for Ethereum's future.Prepare to understand how this burning mechanism is reshaping the landscape of one of the world's leading blockchain networks. Ethereum s EIP-1559 update has already burned $1 million worth of ETH. With the new update, the base fee from each Ethereum transaction gets burned, deflating the supply of ETH. In the meantime, the price of ETH has jumped more than 6% in the last hour.This milestone represents a significant step in Ethereum's journey towards potentially becoming a deflationary asset, and understanding the underlying factors is crucial for any investor or enthusiast.

Understanding EIP-1559 and the Burning Mechanism

The Ethereum Improvement Proposal (EIP) 1559, also known as the London Hard Fork, fundamentally changed how transaction fees are handled on the Ethereum network. $1 million worth of ETH has been burned in under three hours since the London hardfork and the implementation of EIP-1559 earlier today. EIP-1559 Adds Deflationary Pressure on ETH. Ethereum s EIP-1559 update has already burned $1 million worth of ETH.Before EIP-1559, transaction fees operated under a first-price auction model, where users would bid for their transactions to be included in the next block.This often led to unpredictable and sometimes exorbitant fees, especially during periods of high network congestion.

EIP-1559 introduced a base fee for each transaction, which is algorithmically determined based on the network's congestion level. One million ETH worth have been burned since the implementation of EIP-1559 in August How could you earn profit in the cryptocurrencies market withoutThis base fee is then burned, permanently removing it from circulation.This burning mechanism is the key to understanding why 1 million ETH has been burned since the upgrade.

Base Fee: A dynamic fee that adjusts based on network demand.High demand increases the base fee, while low demand decreases it.
Burning: The base fee is not paid to miners; instead, it is destroyed, reducing the overall supply of ETH.
Priority Fee (Tip): Users can still offer a ""tip"" or priority fee to miners to incentivize them to include their transactions, especially during periods of high congestion.

The Impact of Burning Over 1 Million ETH

Burning 1 million ETH has several significant implications for the Ethereum ecosystem. In a Twitter post published Wednesday, blockchain research firm CryptoRank revealed that over 1 million Ether (ETH) worth $4.24 billion had been burned since the introduction of the EIP-1559 protocol in August as part of the London hard fork.The most immediate impact is the reduction in the overall supply of ETH. On a net basis, however, the supply of Ether is still inflating at about 1.2% per year. In a Twitter post published Wednesday, blockchain research firm CryptoRank revealed that over 1 million Ether (ETH) (worth $4.24 billion) had been burned since the introduction of the EIP-1559 protocol in August as part of the London hard fork. The EIP-1559 protocol reformed the Ethereum fee marketThis, in turn, can lead to several effects, both positive and potentially negative.

Deflationary Pressure on ETH

By removing ETH from circulation, the burning mechanism creates deflationary pressure. On a net basis however the supply of Ether is still inflating at about 1 2 per year In a Twitter post published Wednesday blockchain research firm CryptoRank revealedIf the rate of ETH burned consistently exceeds the rate of new ETH issuance (through block rewards to miners/validators), the total supply of ETH will decrease over time. As of Aug, the Ethereum network has burned a total of 465,657 ETH since the start of the year. After the implementation of EIP-1559 in June 2025, a total of 4.36 million ETH have been burned.This scarcity could potentially drive up the price of ETH, assuming demand remains constant or increases.

However, it's important to note that the Ethereum network is still, on a net basis, inflating. The implementation of EIP-1559 has had a profound impact on the amount of ETH being burned. Since its introduction, over 4.2 million ETH, worth approximately $14 billion, has been burned through this mechanism.While EIP-1559 introduces the burning mechanism, new ETH is still being created through block rewards for validators securing the network. In a Twitter post published Wednesday, blockchain research firm CryptoRank revealed that over 1 million Ether (ETH) (worth $4.24 billion) had been burned since the introduction of theWhether ETH becomes truly deflationary depends on the balance between the burn rate and the issuance rate.

Impact on Transaction Fees

EIP-1559 was designed, in part, to make transaction fees more predictable.While the burning mechanism doesn't directly lower fees, it provides a more transparent and stable fee structure.Users can now estimate the base fee more accurately, reducing the uncertainty associated with transaction costs.

However, it's crucial to remember that transaction fees are still influenced by network congestion.During periods of high demand, even with EIP-1559, transaction fees can spike. The burning of the base fee is a crucial aspect of EIP-1559. By removing a portion of ETH from circulation, it creates a deflationary pressure on the supply of ETH. The Block's data shows that a significant amount of ETH has been burned since the implementation of EIP-1559, highlighting its potential impact on the overall supply dynamics.Upgrades like the Dencun upgrade in 2025, aimed at reducing transaction fees on Layer-2 scaling solutions, have also played a role in modulating the overall burn rate by reducing overall network transaction costs.

Effects on Network Security

The burning of ETH impacts miners and validators, as the base fee they previously received is now destroyed.To compensate for this, the priority fee becomes even more important in incentivizing them to include transactions. On a net basis, however, the supply of Ether is still inflating at about 1.2% per year. In a Twitter post published Wednesday, blockchain research firm CryptoRank revealed that over 1 million Ether (worth $4.24 billion) had been burned since the introduction of the EIP-1559 protocol in August as part of the London hard fork.The network continues to evolve, and these incentives are being carefully watched to ensure security is not negatively affected.

The transition to Proof-of-Stake (PoS) through the Merge has also fundamentally altered the economics of Ethereum.Under PoS, validators earn rewards for staking their ETH, which is generally more energy-efficient and requires less ETH issuance compared to the previous Proof-of-Work (PoW) system. While $7.3 billion worth of ETH has been burned since its implementation, the burn rate has failed to consistently outpace new issuance. Lower network activity and reduced transaction fees from upgrades like Dencun in 2025 have contributed to this imbalance. Ethereum s current supply stands at 120.69 million ETH, reflecting a 0.51% annualThis transition further influences the overall ETH supply and burn dynamics.

Analyzing the Numbers: ETH Burn Statistics

The data surrounding ETH burning provides valuable insights into the effectiveness of EIP-1559 and the overall health of the Ethereum network. Increased network usage had caused transactions costs on Ethereum to skyrocket and since EIP-1559 was implemented to burn a third of all fees, a higher volume of ETH has been constantly taken out of circulation. The number had quickly hit 1 million ETH, and by 10 million, the community had turned its eyes towards the 1 million mark.Several key metrics help track the progress and impact of the burning mechanism.

Total ETH Burned: As of recent data, over 4 million ETH has been burned since the activation of EIP-1559. Since EIP-1559 took effect in August, Ethereum has now burned over 1 million Ether from circulation. At today s prices, that s over $4.2 billion in value. Data from Watch The Burn reveals the Ethereum network s achievement of this latest milestone.This number continues to grow as the network processes more transactions.
Burn Rate: The burn rate fluctuates based on network activity. One million ETH worth have been burned since the implementation of EIP-1559 in August One million ETH worth have been burned since the implementation of EIP-1559 in AugustHigher demand leads to more ETH being burned per block.
ETH Issuance Rate: The rate at which new ETH is created through block rewards.This rate has significantly decreased since the Merge and the transition to Proof-of-Stake.
Net Inflation Rate: The difference between the ETH issuance rate and the burn rate.This determines whether the overall supply of ETH is increasing or decreasing.

Tools like Watch The Burn provide real-time data and visualizations on these metrics, allowing users to monitor the ETH burn progress and analyze its impact on the Ethereum ecosystem.

Key Milestones in ETH Burning

Since the activation of EIP-1559, the Ethereum network has reached several key milestones in its ETH burning journey. Posted by u/heinaga2025 - 1 vote and no commentsThese milestones highlight the significant impact of the upgrade on the overall supply of ETH.

Initial Surge: Within just a few months of EIP-1559 going live, over 1 million ETH were burned.This initial surge demonstrated the potential of the burning mechanism to significantly reduce the ETH supply.
Consistent Burning: The network has proven capable of maintaining a high burn rate, consistently removing ETH from circulation.
Reaching 4 Million ETH Burned: Reaching this landmark shows the lasting impact and continued effectiveness of EIP-1559.

Potential Future Scenarios and Predictions

The future of ETH burning and its impact on the Ethereum ecosystem are subjects of much speculation and analysis.Several factors could influence the burn rate and overall supply dynamics in the coming years.

Increased Network Activity

If Ethereum continues to see increased adoption and network activity, the burn rate will likely increase.The growth of DeFi, NFTs, and other applications built on Ethereum could drive up transaction volume and, consequently, the amount of ETH burned.

However, increased network activity also implies higher transaction fees, which might discourage some users. Total ETH Burned to Date Since the activation of EIP-1559 on Aug, Ethereum has burned a substantial amount of ETH. As of recent data: - Over 4 million ETH has been burned to date. - The burn rate fluctuates based on network activity, with higher demand leading to more ETH being burned per block.Finding the right balance between network usage and transaction costs will be crucial for sustaining long-term growth.

Layer-2 Scaling Solutions

The continued development and adoption of Layer-2 scaling solutions, such as rollups, could significantly impact the ETH burn rate. More than 1 million ETH worth over $4 billion have been burnt in four months since the implementation of the EIP-1559 protocol in August.Layer-2 solutions process transactions off the main Ethereum chain, reducing congestion and lowering transaction fees.While this makes Ethereum more accessible and scalable, it could also decrease the amount of ETH burned.

The Dencun upgrade aimed to further reduce fees for Layer-2 transactions, indirectly impacting the ETH burn rate.The trade-off is increased scalability at the potential cost of a slower burn rate.

EIP-1559 Adjustments

It's also possible that the parameters of EIP-1559 could be adjusted in the future to fine-tune the burn rate.The Ethereum community could propose changes to the base fee calculation or other aspects of the burning mechanism to optimize its impact on the overall supply dynamics.

Will ETH Become Deflationary?

Whether ETH will become truly deflationary remains to be seen.It depends on the long-term balance between the burn rate and the issuance rate.Factors like network activity, Layer-2 adoption, and potential EIP-1559 adjustments will all play a role in determining the future of ETH's supply dynamics.

Criticisms and Concerns Surrounding EIP-1559

While EIP-1559 has been widely praised for its positive impact on Ethereum's tokenomics and fee structure, it's not without its critics and concerns. Ethereum, the smart contract-enabled network that Three Arrows Capital founder Su Zhu publicly denigrated this week for putting profits over people, has burned 1 million ETH since an August protocol upgrade. That's roughly $4.3 billion worth of the cryptocurrency that's been taken out of circulation and destroyed.Some members of the community have raised issues about its effects on miners/validators and its potential to destabilize the network.

Impact on Miners/Validators Revenue

One of the main criticisms of EIP-1559 is its impact on miners (now validators under Proof-of-Stake). One million ETH worth have been burned since the implementation of EIP-1559 in August In a Twitter post published Wednesday, blockchain research firm CryptoRank revealed that over 1 millionBy burning the base fee, EIP-1559 reduced the revenue that miners/validators receive from each transaction.While the priority fee still provides an incentive to include transactions, some argue that the reduced revenue could discourage miners/validators and potentially compromise network security.

However, the transition to Proof-of-Stake has largely addressed these concerns.Under PoS, validators earn rewards for staking their ETH, which is generally more energy-efficient and sustainable than the previous Proof-of-Work system.The reduced ETH issuance under PoS also makes the burning mechanism more effective in creating deflationary pressure.

Centralization Concerns

Some critics argue that EIP-1559 could lead to greater centralization of the Ethereum network.As the base fee is burned, larger validators with more ETH to stake may have an advantage over smaller validators, potentially leading to a concentration of power in the hands of a few entities.

However, Ethereum's ongoing efforts to promote decentralization, such as the development of client diversity and anti-censorship mechanisms, aim to mitigate these risks and ensure that the network remains resilient and inclusive.

Unpredictable Burn Rate

The ETH burn rate is highly dependent on network activity, which can be unpredictable.During periods of low demand, the burn rate may be significantly lower, reducing the effectiveness of the burning mechanism in creating deflationary pressure. One million ETH worth have been burned since the implementation of EIP-1559 in August In a Twitter post published Wednesday, blockchain research firmThis variability could make it difficult to accurately predict the future supply of ETH and its potential price appreciation.

How to Benefit from EIP-1559 as an Investor

Understanding the implications of EIP-1559 can help investors make informed decisions about their Ethereum holdings. More than 800,000 ETH has been burned since the implementation of EIP-1559. In other words, nearly $3.8 billion worth of ETH has been taken out of the supply. The second-largest cryptocurrency has been up around 59% since the start of October. Share this articleHere are some strategies to consider:

Hold ETH for the Long Term: If you believe that the burning mechanism will create long-term scarcity and drive up the price of ETH, consider holding your ETH for the long term.This strategy allows you to benefit from potential price appreciation as the supply of ETH decreases.
Stake Your ETH: Staking your ETH allows you to earn rewards while contributing to the security of the network.The reduced ETH issuance under Proof-of-Stake makes staking even more attractive, as it allows you to accumulate more ETH relative to the overall supply.
Monitor Network Activity: Keep an eye on network activity and the ETH burn rate.This will help you gauge the effectiveness of EIP-1559 and make informed decisions about your Ethereum investments.
Consider Layer-2 Solutions: While Layer-2 solutions may reduce the ETH burn rate, they also make Ethereum more accessible and scalable.By using Layer-2 solutions, you can participate in the Ethereum ecosystem while potentially reducing your transaction costs.

Disclaimer: Investing in cryptocurrencies involves risks, and you should always conduct your own research and consult with a financial advisor before making any investment decisions.

Conclusion: The Future of Ethereum and EIP-1559

The implementation of EIP-1559 and the subsequent burning of over 1 million ETH represents a significant milestone in Ethereum's journey.The burning mechanism has introduced deflationary pressure on ETH, potentially leading to long-term price appreciation.While challenges and criticisms remain, the Ethereum community continues to refine and improve the network to ensure its sustainability and growth.The long-term success of EIP-1559 will depend on a variety of factors, including network activity, Layer-2 adoption, and potential future adjustments to the protocol.Nevertheless, the burning of over 1 million ETH serves as a powerful testament to the transformative potential of EIP-1559 and its impact on the future of Ethereum.Investors and enthusiasts alike should continue to monitor these developments closely, as they will undoubtedly shape the landscape of one of the world's leading blockchain networks for years to come.Want to learn more about how EIP-1559 impacts your investments?Research trusted sources and consult a financial advisor today!