In the past week, several DeFi projects have made significant contributions to burning Ethereum, with Uniswap ($UNI) leading the charge. As reported by Phoenix, a cryptocurrency media outlet, Uniswap has so far burnt 1,262.1 ETH. It has labeled it the largest burner compared to other decentralized finance platforms.
TOP #ETHEREUM BURNER #DEFI PROJECTS#Uniswap $UNI #1Inch #Metamask #0xProtocol $ZRX #GnosisChain #KyberSwap #Aave $AAVE #Paraswap #Pendle #Tokenlon $LON pic.twitter.com/VBgTNnIQpm
— PHOENIX – Crypto News & Analytics (@pnxgrp) November 10, 2024
Ethereum Burn Leaders: Metamask, 1Inch, and Gnosis
Next was Metamask which recorded a high burn of 185 ETH after the Uniswap burn. Metamask is one of the most popular crypto wallets and a gateway to the decentralized web, so the roles are irreplaceable. Since it has been incorporated into several DeFi platforms, it plays an essential role in the deflationary characteristics that define Ethereum.
1Inch, another DeFi giant, has also removed 180.4 $ETH from circulation over the past week. 1INCH is famous for pooling together liquidity in multiple DEXs; its high transaction volume contributes to Ethereum burns. On the other hand, 0xProtocol ($ZRX) also staked 137.9 ETH to continue its service in Ethereum’s DeFi sphere.
Additionally, the Gnosis project spent 122.2 $ETH in its continued role as a steward of decentralized governance and prediction markets. KyberSwap, a DEX with decentralized liquidity provisioning, was the second-largest burner of $ETH, with 42.1 $ETH, and Aave, a lending protocol, burned 36.9 ETH.
Paraswap, Pendle, and Tokenlon Contribute to DeFi’s Burn Mechanism
Other platforms that contributed to Ethereum’s deflation included Paraswap, Pendle, and Tokenlon which burned 35.9 $ETH, 22.1 $ETH, and 14.1 $ETH respectively. These smaller amounts are also still relevant to the larger DeFi picture, demonstrating the interplay of different projects in contributing to Ethereum’s supply over the long term.
Altogether, these projects are jointly contributing to the process of a decline in Ethereum’s circulating supply. With more DeFi platforms implementing the burning mechanism, Ethereum deflationary pressures are expected to persist, which enhances the asset value and scarcity over time.