Crypto: Ethereum burns 18 billion of $ , but the supply continues to increase.

Since 2021, Ethereum has burned more than 6 million ETH, which is 18 billion dollars in value. However, despite this mechanism designed to reduce the supply, the total amount of ETH in circulation continues to rise. How to explain this paradox? Analysis of the figures, causes, and consequences for the second most important crypto in the market.

Ethereum has burned 6.1 million of ETH (18 billion dollars) via EIP-1559, but its total supply keeps increasing.

Despite the burn, the issuance of new ETH frequently exceeds the destroyed volumes, maintaining a net annual inflation of approximately 0.8%.

The Fusaka upgrade could reverse the trend of Ethereum, reactivating the activity of the crypto network.

Crypto: Ethereum burns 18 billion dollars 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 burning a portion of crypto transaction fees, thus reducing the circulating supply. To date, more than 6.1 million ETH have been definitively removed, representing a value of 18 billion dollars at the current price.