While people were distracted by the Blur airdrop and 800 gwei gas prices, I could not help but watch the burn of ETH at https://ultrasound.money/.
For those who missed the chaos, Blur, a new NFT marketplace, announced an airdrop on Feb 14th. Users rushed to claim the airdrop and sell, or LP in their pool. As we have seen time and again on Ethereum, gas spiked. Gas prices hit 800 Gwei but then stabilized around 400 before settling back to something more reasonable.
These elevated gas prices caused the ETH to burn to accelerate to more than 2K ETH in an hour. This burn level breaks down to 1 ETH burned every 2 seconds – and this was a single airdrop! It was to imagine what would happen to the supply of ETH when the chain becomes busier more consistently. ETH currently has a headwind in the Shanghai withdraws, but once that is over, it’s hard to see what will hold ETH back.