Ethereum‘s pending withdrawal value has dropped below $1 billion, a significant decrease from the over $3 billion high in mid-April. Data from Token Unlocks shows that around 488,470 coins, valued at less than $900 million at current prices, are confirmed and queued for withdrawal. In the next 22 hours, about $7 million worth of ether will be withdrawn.
Memecoin trading contributes to higher burn rates
As Ethereum’s net staking balance approaches equilibrium, the difference between total ether withdrawn and deposited is decreasing. Yesterday, the net staking balance increased by about 20,960 coins, resulting in a total net staking balance of -344,470 coins (or -$671.23 million) since the Shanghai upgrade. Token Unlocks data reveals that approximately 17.74 million ether, valued at over $32.5 billion, have been deposited.
While the number of Ethereum withdrawals declines and a larger proportion of the total supply is staked, network activity is causing burn rates to rise even higher.
According to Ultra Sound Money, the ether supply has decreased by .611% per year in the past 30 days – significantly more than the .179% per year post-Merge burn rate. In the last week, the burn rate has increased to .884% per year, resulting in over 20,400 ether being burned, valued at nearly $37.9 million.
This increase in burn rates is primarily driven by memecoin trading on decentralized exchanges, such as PEPE and WOJACK. Steven Zheng Uniswap has consistently been the largest ETH burner over the past week due to its increased usage by memecoin traders.
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