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Ethereum (ETH) has become 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 75,301 ETH to its supply.

The shift from deflationary to inflationary occurred in Q2 2024, when network activity decreased. During this quarter, 228,543 ETH were spent versus 107,725 ETH burned, resulting in 120,818 ETH added to the blockchain.

Uniswap remains the largest burner of ETH, with 71,915 ETH burned in 2024. However, the burn rate decreased by 72.4% qoq 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.

July 2024 marked a monthly low in ETH burns for the year, with just 17,114 ETH burned, a 35% drop from June. This figure contrasts sharply 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 recorded a 74.3% quarterly drop in ETH burn this year, from 8,364 ETH burn in Q1 to 2,150 ETH in Q2. “A decline in DEX trading on the blockchains it supports has impacted the burn rate,” the report highlighted.

Layer-2 blockchain Scroll was also among the top 10 ETH burners in 2024. This could be due to users interacting with the network to increase its potential rewards, as there are rumors that a token airdrop from the network will take place this year.

The methodology CoinGecko employed involved examining data from January 1st through August 5th, 2024 using Dune Analytics and Etherscan.

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