Developments in the DeFi sector in the Ethereum ecosystem affect the ETH supply. These changes, especially with fluctuations in ETH burn rates, lead to a decrease in supply and price movements. The latest report published by the Pheonix Group highlights Uniswap, MetaMask and 1inch as leading projects in ETH burn.

Uniswap: Leader in Token Burns

Uniswap is a decentralized exchange that provides token swaps and is leading the way in ETH burning. Approximately 1,841.9 ETH, or $5 million, was burned last week. This shows how heavily Uniswap is used on Ethereum.

1inch and MetaMask: The Key to Entering DeFi

1inch stands out as a DEX aggregator that provides the best trading rates among various DEXs. Last week, it burned 207.7 ETH, or about $558.7 thousand. MetaMask, despite being just a digital wallet, burned 200.6 ETH, or $539.6 thousand, this week. These two projects are among the important components of the DeFi ecosystem.

0x Protocol and Gnosis: DeFi's Hidden Players

0x Protocol burned 156.4 ETH, or $420.7K, by offering DEX services on various platforms. The protocol facilitates P2P trading between different dApps. Gnosis, on the other hand, burned 106.1 ETH, or $285.4K, as a platform offering market prediction and DeFi tools. Gnosis’ role in the Ethereum ecosystem is growing.

Pendle, Kyber Network, Aave and Others

Pendle burned 38 ETH, or $102.2 thousand, by offering a yield tokenization solution, while Kyber Network burned 36.6 ETH, or $98.5 thousand. Lending protocol Aave burned 24.5 ETH, or $65.9 thousand. Other projects include ParaSwap and Tokenlon. ParaSwap burned 22.3 ETH ($60 thousand) and Tokenlon burned 15.6 ETH ($42 thousand).

Last week, DeFi projects reduced the supply of ETH by a total of 12,233 ETH, or about $32.9 million. This shows that DeFi usage is increasing and that prices can be affected due to the limited supply of ETH. The increase in ETH burns also shows the extent of the impact DeFi projects have on Ethereum.

As a result, DeFi projects are reducing the supply of ETH, and Uniswap and 1inch stand out in this process. In total, $32.9 million worth of ETH was burned. This is an indication of the growing interest in the DeFi ecosystem and the potential for Ethereum to retain its value.