In 2022, the Ethereum network burned about 1.8 million ETH. Meanwhile, in the second quarter the pace of the burn slowed markedly as the price of the second-largest cryptocurrency by market capitalization fell, according to ForkLog’s analytical report.
Since the activation of EIP-1559, Ethereum has burned almost 2.8 million ETH.
The largest number of coins (~254,000 ETH) were burned in peer-to-peer user-to-user transactions. The NFT marketplace OpenSea and the Uniswap v2 protocol ranked second and third with 230,000 ETH and 145,000 ETH respectively.
In autumn, developers migrated the blockchain to the Proof-of-Stake consensus algorithm. From September 2022 to January 2023, issuance increased by 3,146 ETH. If the network had continued using Proof-of-Work, the figure could have exceeded 1.38 million ETH.
For the year, the share of ETH held in smart contracts of decentralized applications stood at 25.62% — the figure declined by almost four percentage points over the period. Over 12 months, the total amount of Ethereum on centralized exchanges fell by 14.5%, to around 19.3 million ETH.
The Shanghai hard fork targeted for March 2023 is expected to activate. The update includes EIP-4895, which will allow withdrawing ETH from the Beacon Chain staking contract.
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