As the DeFi space continues to expand, Ethereum's major projects remain high network users through substantial fee burning, contributing to the decrease in ETH supply. According to recent data from ultrsound.money, shared by Phoenix Group, top DeFi players like Uniswap, MetaMask, and 1inch have burned the highest Ethereum fees in the past month, with Uniswap alone responsible for burning approximately $15.2 million or 6,169.9 ETH.
Uniswap Dominates Ethereum Fee Burning by a Large Margin
Uniswap, the largest decentralized exchange (DEX) operating on the Ethereum network, burned over 6,000 ETH in the last month. This high burn rate demonstrates the project’s significance within the Ethereum ecosystem, where many users rely on Uniswap for token swaps, ensuring a high and consistent network activity. When ETH is burned, it is permanently removed from circulation, which is expected to benefit the token's value over the long term.
MetaMask and 1inch Take Second and Third Places
Following Uniswap, MetaMask—a popular Ethereum-based wallet and access point to DeFi platforms—has burned 645.6 ETH, valued at roughly $1.6 million. MetaMask’s functionality allows users to swap tokens directly within the wallet, making it a convenient integrated solution.
Third place goes to 1inch, a decentralized exchange aggregator, which burned 630.3 ETH, approximately $1.5 million. 1inch is popular among traders looking for the best DeFi rates, attracting users seeking cost-effective swaps.
Other Key Contributors to ETH Burning
Other notable contributors include 0x Protocol and Gnosis, burning 509.7 and 358.4 ETH respectively. Additional projects such as Pendle, Kyber Network, Aave, ParaSwap, and Tokenlon burned between 48.6 and 143.8 ETH each. Together, these projects contributed fees totaling $96.1 million and 39,076 ETH.
Impact on Ethereum's Deflationary Model
This significant fee burning supports Ethereum's deflationary model introduced by the EIP-1559 update. The decrease in ETH supply, especially amid high network activity, could boost the asset's scarcity, which, in turn, may drive up its value in the long term.
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