What is Behind the Rapid Ether Burn? $63.5 Mln ETH Burned in Less Than a Week
It is neither popular DEX Uniswap nor stablecoin USDT rather the NFT marketplace OpenSea which has overtaken as the biggest gas guzzler.
Ever since the London upgrade was activated at block 12,965,000 on August 5, last week, nearly 21,400 ETH has been burned as of writing. This burn represents more than $63.5 million worth of ETH completely removed from the circulation.
Some of the big contributors to this burn include the popular DEX Uniswap, which collectively (V2+V3) is responsible for over 2,335 ETH burned. USDT, 1inch, and MetaMask are other big contributors.
However, the biggest contributor to these burns is the non-fungible token (NFT) space.
NFT marketplace OpenSea accounts for the highest amount of Ether burn, just over 2,638 ETH, according to Dune Analytics. For the past few days, it is also sitting on the top spot at the Eth gas guzzler list, as per Etherscan.
Axie Infinity is also leading the gas consumption on the second-largest network for a time now and is the third biggest ETH burner at 1,329 ETH. SpacePoggers and COVIDPunks are also gaining a lot of traction and are among the top 10 ETH burners.
NFT mania first picked up speed at the beginning of this year, and while the rest of the crypto market topped in April and May, NFTs only continued their ascent.
The ongoing popularity of NFT has also led to a surge in ETH gas fees, which fell in single-digit in June and is now back above 50 gwei, aiding in the acceleration of the amount of ETH burned. The more the Ethereum network is used, the higher the gas price, the more Ether burned.
Where will NFT’s be in the next ten years?
— Mike Tyson (@MikeTyson) August 9, 2021
Over the past week, the CryptoPunks NFT collection dominated the Top NFT Sales completely, accounting for six out of the ten top NFT sales. The top punk was sold for more than 1,500 ETH, about $4.358 million, as per Dapp Radar.
This boost in CryptoPunks’ activity was in part influenced by Minting DAO, which recently acquired all CryptoPunks available at the floor price, which significantly increased the amount of money collectors now have to spend to own a punk.
In the past 30 days, Art Blocks, Bored Ape Yacht Club, Bored Ape Kennel Club, Meebits, Stoner Cats, Cool Cats, MoonCats, VeeFriends, Sup Ducks, Autoglyphs, and PUNKS Comic also started to see traction.