#ity. It's a key indicator of Ethereum's deflationary pressure. EIP-1559, introduced to the network, mandates a portion of transaction fees are burned, reducing the circulating supply.
Here's a more detailed look:
Factors Affecting the Burn Rate:
EIP-1559: The main mechanism driving the burn rate. A portion of transaction fees is burned, not given to miners.
Network Activity: Higher transaction volume generally leads to a higher burn rate.
Base Fee: The base fee for transactions is the primary driver of the burn rate.
Protocol Changes: Updates to the Ethereum protocol can affect how fees are distributed and burned.
Why the Burn Rate Matters:
Deflationary Pressure:
The burn rate contributes to deflationary pressure on the network, potentially increasing ETH's value.
Supply and Demand:
By reducing the circulating supply, the burn rate helps to manage the balance between supply and demand.
Economic Health:
The burn rate is a metric used to assess the health of the Ethereum network's economy.
Recent Trends:
In the first quarter of 2025, Ethereum burned only 47.2k ETH while emitting 232.2k ETH.
Daily burns have averaged around 524 ETH, which isn't enough to offset emissions, according to a BingX Blog.
The network was deflationary for only 3 days in the entire quarter.
The burn rate is currently around 0.13 ETH per minute, and the total burned is 4.6 GWei, according to Beaconcha.in.
AInvest reports that the burn rate has reached an all-time low, with ETH supply growth at 0.76%.
