Recent developments in the DeFi sector of the Ethereum ecosystem are having a significant impact on the supply of ETH. Fluctuations in ETH burn rates, in particular, are causing a decrease in supply and influencing price movements. A report published by the Phoenix Group has shed light on the leading projects in ETH burning, including Uniswap, MetaMask, and 1inch.
Uniswap, a decentralized exchange that facilitates token swaps, is leading the way in ETH burning activities. Last week, approximately 1,841.9 ETH, valued at around five million dollars, was burned, highlighting the high level of utilization Uniswap has on the Ethereum network.
1inch is standing out as a DEX aggregator that provides the best trading rates across various DEXs. In the last week, it burned the equivalent of 207.7 ETH, approximately 558.7 thousand dollars. Despite being primarily a digital wallet, MetaMask also played a significant role by burning 200.6 ETH, roughly 539.6 thousand dollars this week, showcasing its importance within the DeFi ecosystem.
0x Protocol, which offers DEX services across various platforms, burned 156.4 ETH, or 420.7 thousand dollars. This protocol facilitates peer-to-peer trading among different dApps. Gnosis, a platform providing market forecasting and DeFi tools, also contributed by burning 106.1 ETH, valued at 285.4 thousand dollars, further emphasizing its growing role in the Ethereum ecosystem.
Other projects also made contributions to ETH burning. Pendle burned 38 ETH, approximately 102.2 thousand dollars, through yield tokenization, while Kyber Network burned 36.6 ETH, or 98.5 thousand dollars. Lending protocol Aave participated by burning 24.5 ETH, valued at 65.9 thousand dollars. Additional projects like ParaSwap and Tokenlon saw burns of 22.3 ETH (60 thousand dollars) and 15.6 ETH (42 thousand dollars), respectively.
Collectively, last week, DeFi projects reduced ETH supply by 12,233 ETH, equivalent to about 32.9 million dollars. This indicates a growing interest in DeFi usage and suggests that ETH’s limited supply could have a significant impact on prices. The increase in ETH burning illustrates the substantial influence that DeFi projects have on the Ethereum network.
In conclusion, DeFi projects are reducing ETH supply, with Uniswap and 1inch leading the way. A total of 32.9 million dollars worth of ETH was burned, highlighting the increasing interest in the DeFi ecosystem and the potential for Ethereum to maintain its value.
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Disclaimer: The information provided in this article does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks, and they should conduct their own research.