Uniswap & 1inch Lead the Charge as DeFi Projects Burn Millions in ETH

We are witnessing the development of the DeFi sector and the constant changes in the Ethereum burn rate, which has contributed to reduced supply and price fluctuations. The recent report from Pheonix Group also reveals the leading contenders in the category of ETH burners, with Uniswap, MetaMask, and 1inch taking the lead. 

Uniswap: Dominating the Burn Charts

Uniswap is a decentralized exchange through which users can swap tokens effortlessly; it is the largest consumer of ETH. Uniswap has burned 1,841.9 ETH for the preceding week, or roughly $5M. 

1inch and MetaMask: The Gateway to DeFi

1inch protocol, a DEX aggregator recognized for the best trading rates obtained across numerous DEXs, burnt 207.7 ETH over the last seven days worth $558.7K. While MetaMask, which primarily functions as a digital wallet, has become a major source of ETH burns. This week, it consumed 200.6 ETH, approximately $539.6K. While the burn mechanism in DeFi has been quite effective, MetaMask has provided users with the necessary tools that heightened its importance in the process.

0x Protocol and Gnosis: DeFi’s Hidden Backbone

The adaptations of the 0x Protocol that provide DEX possibilities in several platforms burned 156.4 ETH while it is worth $420.7K. Being an infrastructural solution for decentralized finance, an average burn rate signals that 0x Protocol is a solution that enables P2P trading between different dApps.

Gnosis, a platform for market prediction and different Defi tools, burned 106.1 ETH this week, which is $285.4K. Gnosis’s addition to ETH burns shows the importance of governance platforms in the Ethereum ecosystem, particularly as users seek out decentralized forms of decision-making.

Pendle, Kyber Network, and Aave and Others: Specialized Solutions into the Mix

Pendle, designed for tokenized yield, burned 38 ETH ($102.2K), while Kyber Network, which offers liquidity aggregation, burnt 36.6 ETH ($98.5K). According to the data, one of the most prominent lending protocols, Aave, burns 24.5 ETH, or $65,900. All these cater to meet some DeFi demands and contribute to the ETH supply reduction through the services offered.

Multi-Chain DEX aggregator ParaSwap and decentralized trading protocol Tokenlon burnt 22.3 ETH ($60.0K) and 15.6 ETH ($42.0K), respectively. 

Combined, all these DeFi projects have removed 12,233 ETH from the circulating supply in the past week, equivalent to $32.9M. Such a high burn rate also demonstrates the increased use of DeFi and can affect Ethereum price based on the scarcity of ETH tokens.