Ethereum

🧵 @ethereum is going deflationary.
Let’s break down how EIP-1559 changed ETH’s monetary policy, how much has been burned so far, and what it means for holders

Ethereum is the world computer. The universal platform for cryptocurrencies, blockchain apps, stablecoins, and decentralized technologies.

Cryptocurrency enthusiast with a deep understanding of blockchain technology and active engagement in the global crypto ecosystem

1/
EIP-1559 was activated on August 5, 2021.
It introduced a base fee that gets burned instead of paid to miners/validators.
This permanently removes ETH from circulation — and that's huge.
It made ETH programmatically scarce.

3/
The slope of this curve reflects network activity.
More txs → higher base fees → more ETH burned.
This is what gives Ethereum its deflationary pressure — especially during high usage periods like NFT booms or L2 surges.

4/ Here’s a heatmap of ETH burned per month 📊
You can clearly see the hot zones of high activity.

5/And since The Merge (Sept 2022), issuance dropped by ~90%.
This means @ethereum has entered net deflation territory during active periods.

ETH is becoming ultrasound money.

6/
💡 TL;DR

EIP-1559 burns ETH with every tx

Merge reduced new ETH issuance

Net supply is often negative

Scarcity is now built-in

If ETH becomes the settlement layer of crypto… its value narrative strengthens.

2/
🔥 So… how much ETH has been burned?

Over 4.5M ETH have been burned since EIP-1559 went live.
That’s over $15B at current prices.

Let’s visualize it 👇