Ethereum is quietly becoming more scarce—not by design, but by accident.
According to Coinbase executive Conor Grogan, over $3.4 billion worth of ETH has effectively vanished from circulation due to user errors, technical bugs, and forgotten wallets.
The tally stands at more than 913,000 ETH lost—up nearly 44% from last year. Combined with the 5.3 million ETH burned through network fees, Ethereum’s total unavailable supply now exceeds 6.2 million coins, accounting for around 5% of all ETH ever issued.
While Ethereum doesn’t have a fixed supply cap like Bitcoin, these unintentional reductions are pushing the asset in a deflationary direction. Analysts believe this could influence long-term price behavior, especially if demand keeps growing.
Some of the biggest losses stem from smart contract disasters—Parity’s multisig bug alone locked up 306,000 ETH. Other large blunders include the Quadriga collapse and the Akutars NFT mint failure.
Though the pace of catastrophic losses has slowed, everyday mistakes continue to render tokens unusable. As Ethereum trades near $3,800, the shrinking float could become a key driver in shaping its future market dynamics.
Alexander Zdravkov
Reporter at Coindoo
Alexander Zdravkov is a person who always looks for the logic behind things. He is fluent in German and has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
Source: https://coindoo.com/ethereums-hidden-crisis-why-millions-in-eth-are-gone-forever/