cryptobriefing.com
Ethereum ($ETH) has turned inflationary in 2024 for the first time since 2022. Despite burning 465,657 $ETH since the start of the year, the network has added a net total of 75,301 $ETH to its supply.
The shift from deflationary to inflationary occurred in Q2 2024, as network activity declined. During this quarter, 228,543 $ETH were emitted versus 107,725 $ETH burned, resulting in 120,818 $ETH added to the blockchain.
Uniswap remains the largest burner of $ETH, having burned 71,915 $ETH in 2024. However, its burn rate dropped 72.4% quarter-on-quarter to 15,031 $ETH in Q2, down from 54,413 $ETH in Q1. $ETH transfers and Tether (USDT) were the second and third largest contributors to $ETH burns, respectively.
Contracts with the most $ETH burned in 2024. Image: CoinGecko
July 2024 marked a monthly all-time low in $ETH burns for the year, with only 17,114 $ETH burned, a 35% decrease from June. This figure starkly contrasts with the all-time high of 398,061 $ETH burned in January 2022 during the last bull market cycle.
Notably, trading bots Banana Gun and Maestro secured 4th and 5th place in $ETH burning, respectively. Together, both applications burned over 20,000 $ETH in 2024.
However, Banana Gun registered a quarterly decline of 74.3% in $ETH burning this year, going down from burning 8,364 $ETH in Q1 to 2,150 $ETH in Q2. “A slump in DEX trading on the blockchains it supports has impacted its burn rate,” highlighted the report.