The amount of Ether (ETH) permanently lost due to user mistakes and smart contract bugs has reached a staggering 913,111 ETH, worth over $3.43 billion at current prices, according to recent blockchain data analysis.
Lost Ether Equals 0.76% of Total Supply
The lost ETH represents approximately 0.76% of Ethereum’s circulating supply of 120.7 million coins. This estimate only includes Ether that is irreversibly locked or destroyed through known incidents, not accounting for forgotten wallets or lost private keys.
Recent figures show that the amount of inaccessible ETH has surged 44% since March 2023, when it stood at 636,000 ETH. This sharp increase highlights the persistent risks of irreversible user mistakes on decentralized networks.
Notable Incidents Behind the Losses
Key contributors to the lost ETH include:
- 306,000 ETH lost due to the Parity Multisig bug
- 60,000 ETH tied to the QuadrigaCX contract flaw
- 11,500 ETH burned during the failed Akutars NFT mint
- A net increase of 1,000 ETH transferred to burn addresses in recent months
These incidents involve smart contract design flaws, operational errors, and irreversible transfers to inaccessible addresses.
Total ETH Lost Could Be Even Higher
The reported $3.4 billion in lost ETH only includes verifiable, permanent lockups. It excludes factors such as:
- Lost private keys
- Inactive Genesis wallets
- Forgotten self-custody addresses
Analysts suggest that the actual amount of inaccessible Ether may be significantly higher.
EIP-1559 Burn Raises Total Supply Losses to $23.4B
When factoring in 5.3 million ETH burned via EIP-1559 since its 2021 introduction, the total supply of ETH lost or removed from circulation rises to approximately 6.2 million ETH — worth $23.4 billion.
This burned supply represents over 5% of Ethereum’s total issuance, further tightening availability in the ecosystem.
Ethereum’s Supply Model Remains Dynamic
Unlike Bitcoin, which has a hard cap of 21 million coins, Ethereum has no maximum supply limit. However, its issuance rate has been substantially reduced due to both EIP-1559 and the network’s transition to proof-of-stake via the Merge.
As Ethereum adoption grows, the value of lost ETH serves as a reminder of the critical importance of secure key management and contract audit practices.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.