Coingecko: How much ETH has been destroyed? Is Ethereum inflationary or deflationary?

Author: Shaun Paul Lee, Coingecko; Translator: Tao Zhu, Golden Finance

How much ETH has been destroyed?

As of August 5, 2024, the Ethereum network has destroyed a total of 465,657 ETH since the beginning of the year. After the implementation of EIP-1559 in June 2021, a total of 4.36 million ETH were destroyed.

Meanwhile, 107,725 ETH were destroyed in Q2 2024, down -67.7% from Q1. In Q1 2024, 333,555 ETH were destroyed.

In July 2024, 17,114 ETH were destroyed, a new monthly all-time low for 2024, down -35.0% from June. Meanwhile, 147,620 ETH were destroyed in March 2024, a new monthly all-time high for 2024. However, this figure is a far cry from the all-time high of 398,061 ETH destroyed in January 2022 (at the peak of the last bull run).

Is Ethereum inflationary or deflationary?

Despite being deflationary between Q4 2022 and Q1 2024, Ethereum is now inflationary. ETH issuance has exceeded destruction, with 540,958 ETH added to the network since the beginning of 2024. Meanwhile, 465,657 ETH have been destroyed, resulting in a net increase of 75,301 ETH to the network in 2024.

On a quarterly basis, Q1 2024 was deflationary, with 220,454 ETH issued and 333,555 ETH destroyed. This resulted in a reduction in Ethereum's supply of 113,100 ETH. However, as network activity declined throughout Q2 2024, Ethereum began to become inflationary. Throughout the quarter, a total of 228,543 ETH was issued, 107,725 ETH was destroyed, and 120,818 ETH was added to the blockchain.

Who destroyed the most ETH?

Uniswap remains the largest destroyer of ETH, destroying a total of 71,915 ETH in 2024; in July 2024, a total of 2,470 ETH was destroyed on Uniswap. While Uniswap has been the leader in ETH destruction, ETH destruction has dropped dramatically. Its destruction rate fell by -72.4% month-on-month, from 54,413 ETH in Q1 to 15,031 ETH in Q2. The top ten ETH destroyers accounted for 39.2% of the total destruction in 2022.

ETH transfers are the second largest contributor to ETH destruction, with 33,538 ETH destroyed so far this year. In the first quarter, ETH transfers destroyed 25,668 ETH, which fell to 6,838 ETH in the second quarter, a month-on-month decrease of -73.4%.

Tether (USDT) was the third largest destroyer, destroying 23,332 ETH in 2024. Like Uniswap and ETH Transfer, its destruction rate fell -70.9% quarter-on-quarter to 5,091 ETH in Q2, compared to 17,480 ETH in Q1.

The fourth largest destroyer was Banana Gun (BANANA), destroying 11,060 ETH. The Telegram trading bot destroyed 2,150 ETH in Q2, down 74.3% from Q1 (8,364 ETH). The decline in DEX trading on the blockchain it supports affected its destruction rate. The rest of the top 10 protocols destroyed less than 10,000 ETH each.

ETH Destruction Rate Ranking (2024)

The top ten ETH destroyers from January 1, 2024 to August 5, 2024 are ranked as follows: