While ETH maintains its market position, one thing that is getting increased attention is its fee-burning mechanism powered by EIP-1559.
The Ether burning mechanism plays a critical role in the broader cryptocurrency market. It permanently removes part of ETH transaction fees from circulation, thus helping to decrease the circulating supply of ETH and creating a deflationary effect on the token.
Today, Phoenix Group shared data that highlighted top DeFi projects in the sector of Ethereum burners.
Top 10 DeFi players
DeFi projects play an essential role in Ethereum’s ecosystem. They not only enable trading and transaction of assets but also contribute to the fee-burning activity. Some of the top contributors to this fee-burning process are highlighted below. Their huge utility and demand assist in reducing the circulating supply of ETH, making the asset more scarce and possibly more valuable.
Uniswap
According to data reported by Phoenix Group today, Uniswap emerged as the top contributor to the Ether fee-burning process. This DEX platform enables users to swap crypto assets without the intervention of intermediaries. Uniswap burned a whopping 21.3 ETH worth $577,000 over the past week. This is a huge amount, indicating that the DEX is not just a broadly utilized platform, but also a prominent contributor to Ether fee-burning activity.
Metamask
Metamask secured the second spot. It is a self-custody DeFi wallet that enables users to receive, send, sell, and purchase crypto tokens and NFTs. Over the previous week, it burned 18.6 ETH valued at $50,400.
Gnosis
Gnosis settled on the third place. The DeFi platform burned 11.2 ETH worth $30,400. It is a platform that allows users to participate in various decentralized markets. In the process, it helps burn the Ethereum base fee.
HEX
HEX took the fourth position. It burned 5.1 ETH worth $13,800. HEX is a blockchain project on Ethereum that enables users to stake assets and reward rewards. With its rising popularity, it also plays an important role in the ETH fee-burning process.
Pendle
Pendle clinched position five. It burned 4.1 ETH equivalents to $11,100 over the past week. It is a DeFi platform that allows users to trade interest rate derivatives.
Others
AAVE emerged the sixth after it burned 3.6 ETH worth $9,800. The next is Ox Protocol, which consumed a total of 3.5 ETH valued at $9,500 over the same period.
Polyhedra Network followed after burning 2.8 ETH worth $7,600. Lastly, Kyber Network and ParaSwap gained the spotlight after burning 2.4 ETH ($6,500) and 2.2 ETH ($6,000) respectively.
Final thought
The above list highlighted the major DeFi projects that are significantly contributing to Ether’s fee-burning activity. As these projects continue growing, they further contribute to Ether’s future sustainability, expanding the scarcity of ETH and potentially increasing its price over time.
