As the DeFi space expands, Ethereum’s largest projects maintain significant network usage through large-scale fee burning, leading to a depletion of ETH supply. As per the recent statistics sourced from ultrasound.money and shared by Phoenix Group, today’s DeFi titans, such as Uniswap, MetaMask, as well as 1inch, burnt the most Ethereum fees in the last month, with Uniswap alone responsible for burning approximately $15.2 million or 6,169.9 ETH.
Uniswap Leads Ethereum Fee Burning by a Wide Margin
According to the data, Uniswap, the largest DEX operating on the Ethereum network, has burned more than 6,000 ETH within the past month. This large fee burn demonstrates that the project is an essential part of Ethereum’s ecosystem; many people use Uniswap to swap tokens voluntarily while maintaining high and stable traffic. Having consumers burn ETH literally eliminates ether from circulation–this is another mechanism believed to be favourable for individual token value in the long run.
MetaMask and 1inch Take Second and Third
After Uniswap, on the second number is MetaMask, an Ethereum-based wallet and portal to DeFi platforms, which has burned 645.6 ETH, which is roughly $1.6 million. This can be attributed to the ability offered by MetaMask to swap tokens directly from within the wallet as an integrated solution.
In the third position it is 1inch, a decentralized exchange aggregator, which has burned 630.3 ETH, which is $1.5 million. As a leader in searching for the lowest fees in the DEFI space, 1inch is popular among traders who look for the highest rates to execute their swaps.
Additional Top Contributors
Other ETH burners are 0x Protocol and Gnosis, which burned 509.7 and 358.4 ETH, respectively. Other notable participants on the list are Pendle, Kyber Network, Aave, ParaSwap, and Tokenlon, all of which burnt between 48.6 and 143.8 ETH. The total fee burn has been distributed across these projects, amounting to $96.1 million in value and 39,076 ETH.
The Impact on Ethereum’s Deflationary Model
This massive fee burning adds to Ethereum’s deflationary model brought about by EIP-1559. The cut on ETH supply, particularly at a time when the Ethereum network is experiencing increased activity, can increase the asset’s scarcity and, therefore, its price in the long run.
