Since 2021, Ethereum has burned over 6 million ETH, or $18 billion in value. Yet, despite this mechanism supposedly reducing supply, the total amount of ETH in circulation continues to increase. How to explain this paradox? Analysis of the figures, causes and consequences for the second most important crypto on the market.
In brief
- Ethereum burned 6.1 million ETH ($18 billion) via EIP-1559, but its total supply continues to increase.
- Despite the burn, the issuance of new ETH often exceeds the volumes destroyed, maintaining annual net inflation of around 0.8%.
- The Fusaka update could reverse the trend for Ethereum, boosting activity on the crypto network.
Crypto: Ethereum burns $18 billion in value
The introduction of EIP-1559 in August 2021 marked a turning point for Ethereum. This mechanism, integrated via the London hard fork, allows a portion of crypto transaction fees to be burned, thus reducing the circulating supply. To date, over 6.1 million ETH have been permanently withdrawn, worth $18 billion at current prices.
The most active protocols, like OpenSea and Uniswap, contribute massively to this phenomenon. For example, OpenSea, the leading NFT platform, alone burned hundreds of thousands of ETH. Periods of high activity, such as transaction peaks in 2021 and 2022, accelerated this process, but the pace has since slowed.
Data shows that the volume of ETH burned directly depends on network usage. In 2025, with declining activity, the rate of combustion has decreased, limiting the expected deflationary impact. Despite everything, this mechanism remains a key tool for regulating the supply of crypto in the long term.
Why Ethereum continues to expand despite burning 6 million ETH
Even with 6 million ETH burned, total Ethereum supply continues to grow. The reason? The move to Proof-of-Stake (PoS) in 2022. Unlike Proof-of-Work (PoW), PoS issues new ETH to reward validators who secure the crypto network. Result: around 4 million ETH have been added to the supply since the London hard fork.
The PoS mechanism, although less inflationary than PoW, maintains positive net issuance. During periods of low activity, the fees burned are not enough to compensate for the new ETH issued. Thus, despite efforts to reduce supply, Ethereum remains inflationary, with an annual rate estimated at 0.8%. The consequences are twofold: on the one hand, an increasing supply limits the scarcity of ETH; on the other, a resumption of activity could reverse the trend.
Crypto: Could Fusaka save Ethereum?
The recent Fusaka update, deployed on Ethereum, introduces major optimizations to reduce transaction costs and improve network efficiency. By facilitating the adoption of rollups and layer 2 solutions, Fusaka could boost activity on the blockchain, thereby increasing the volume of ETH burned via crypto transaction fees.
If this update succeeds in attracting more users and projects, the rate of burn could exceed net issuance, making Ethereum deflationary. However, the effects will only be visible in the medium term. For the end of 2025, forecasts vary. Some crypto analysts are counting on a stabilization around $3,000. Others, more pessimistic, evoke a bearish scenario if Ethereum fails to differentiate itself against competitors like Solana.
Ethereum has burned $18 billion in ETH, but its supply continues to grow. This paradox is explained by the Proof-of-Stake mechanism, which always issues new tokens. The question remains open: will Ethereum manage to become deflationary? The answer will depend on the evolution of its ecosystem and its ability to attract more crypto users.
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