What it is
ETH burn refers to the process by which Ether (ETH) is permanently taken out of circulation, reducing its total supply. The primary mechanism for this is EIP-1559, implemented in August 2021, which mandates that the base fee portion of every transaction fee be burned rather than paid to validators. This process cryptographically destroys the ETH, making it irretrievable and effectively reducing the amount of ETH available.
The ETH burn mechanism has made Ether a deflationary asset at times, meaning more ETH is burned than created through block rewards. This supply reduction can have a significant impact on ETH's market valuation, as scarcity is a key economic driver. News reports often highlight the total amount of ETH burned or the "net issuance" (new ETH created minus ETH burned), influencing investor sentiment. Following ETH burn data helps retail investors understand supply-side pressures on the asset.
Why it matters
ETH burn reduces Ether's supply, potentially increasing its value, and is a key metric for understanding Ethereum's economics.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice