Report Shows Over 460,000 Ethereum Tokens Burned in 2024 to Date

The Ethereum Network has faced challenges this year in terms of burning ETH, with over 460,000 Ether burned in 2024. An analysis by CoinGecko indicates that as of August 5, 2024, the network has burned 465,657 ETH this year.

CoinGecko’s research shows that 107,725 ETH were burned in the second quarter of 2024, a significant 67.7% decline from the first quarter’s 333,555. In July 2024, 17,114 ETH were burned, marking the lowest monthly total for the year and a 35.0% decrease from June. The data highlights that Ethereum emissions have exceeded burns, with 540,958 ETH added to the network since the beginning of 2024. Out of this, 465,657 ETH have been burned, resulting in a net addition of 75,301 ETH to the network.

Ethereum’s performance in 2024 has been fluctuating, witnessing an overall price increase of 46% over the course of 365 days. The surge in the crypto market in March led Ethereum to surpass $4,000 before settling at $2,680 by August 2024 after a 14% decline.

In 2024, the Ethereum network encountered inflation for the first time since 2022. The transition from a deflationary to an inflationary environment in Q2 2024 was driven by reduced network activity, surprising many amid the excitement surrounding Ethereum exchange-traded funds (ETFs). Data from Farside Investors revealed net outflows of just $2.9 million from Ethereum ETFs on August 8. Additionally, Fidelity’s FETH saw its initial outflows since its launch.

The reduction in Ethereum burns suggests that the asset has been performing well without requiring burns to boost prices. Observing the burn levels for Q3 in September will be crucial to understanding the network’s trajectory following August’s potential downturn.