Over the past week, the Ethereum network increased its deflationary potential through fee burns which resulted in the loss of 2,277 ETH worth $3.63 million. The top decentralized finance (DeFi) platforms played a significant role in fee burning. Gnosis takes the top position in the chart followed by MetaMask and Uniswap and other protocols have noticeable actions in this list.
Gnosis Leads With $67K+ in Gas Fee Burns
The Ethereum network experienced its most significant deflationary impact from Gnosis as the protocol completed the highest 42.5 ETH burn worth $67.7K over the week. A surge of ETH burned reveals growing activity between users and the increasing use of smart contracts within its ecosystem.
The second highest Ethereum burner during the week turned out to be MetaMask with its 39.6 ETH consumption that reached a value of $63.1K USD. Users of the Ethereum-based wallet continue to drive major gas costs through their daily participation in swaps and NFT trades and staking activities accessing decentralized applications.
The flagship decentralized exchange Uniswap operated on the Ethereum network by burning 34.6 ETH which equated to $55.1K. The ongoing secure trading activity combined with robust liquidity functions at Uniswap produces considerable gas fees despite its competition from newer DEX applications.
Mid-Tier Projects: 1inch, dYdX, and Kyber Stay Competitive
1inch marked its position among top DEX aggregators by burning 22.1 ETH worth $35.2K showing its persistent value in helping traders find the best rates between platforms.
The DeFi liquidity hub Kyber Network contributed its weekly share of 9.0 ETH which translated to $14.3K. The decentralized swapping capabilities of Kyber Network maintain their importance through multichain aggregations and integration services.
Pendle, Synthetix, ParaSwap, and 0x Protocol Also Contribute
The commitment to tokenized yield trading made Pendle burn 8.7 ETH which translated into $13.9K worth of value. Among the top burn transactions Synthetix devoted 5.4 ETH worth $8.6K alongside ParaSwap which also burned 5.4 ETH worth $8.6K while 0x Protocol used 5.0 ETH that equaled $8.0K in value.
Ethereum’s Deflationary Design Gains Momentum
Basic fee burning implemented by EIP-1559 in Ethereum continues to succeed in reducing Ethereum supply through its widespread application in DeFi platforms. The ongoing network activity throughout the week resulted in the successful burning of more than 2,200 ETH coins.
Ethereum’s deflationary model receives long-term support from platform activities like Gnosis, MetaMask, and Uniswap which demonstrate utility and firearm ETH consumption.
