Top DeFi Projects Stake and Burn 12,403 ETH or $30.6M, Uniswap Leads the Pack

Looking at the week's capitalization of the Ethereum Network, decentralized finance protocols have been widely staking and have burnt 12,403 ETH or

Highlighting the week's key contributors to the Ethereum Network's capitalization, decentralized finance protocols have largely participated in the burning of 12,403 ETH, valued at $30.6M.

The fee burn mechanism, integrated into the Ethereum upgrade under EIP-1559, removes transaction fees from the circulating supply, reducing ETH supply and contributing to its deflationary properties.

Among the top projects contributing to the ETH burn, Uniswap leads the pack, burning 2,270.7 ETH, which amounts to $5.6M. Following closely behind are 1inch Network and MetaMask, burning 192.7 ETH ($474.8K) and 188.1 ETH ($463.5K), respectively, in transaction fees. These figures indicate a high level of decentralized exchange and wallet activity on the Ethereum base layer during this period.

Other notable protocols making a significant impact include 0x Protocol, burning 152.6 ETH ($376K), and Gnosis, contributing 39.6 ETH ($97.6K) to the total burn. Additionally, Kyber Network burnt 110.6 ETH ($272.5K). Such figures highlight the role of these protocols in contributing to liquidity, trading volume, and the overall health of the network.

Furthermore, newer projects such as Pendle and ParaSwap are also actively participating in the ETH burn. Pendle burnt 32.5 ETH ($80.1K), while ParaSwap followed closely behind, burning 26.2 ETH ($64.5K). These projects are gradually emerging within the DeFi ecosystem, showcasing its continuous evolution.

Finally, completing the top five are Aave and Tokenlon. Aave, a prominent lending protocol, contributed 22.8 ETH ($56.2K) to the total burn pool, and Tokenlon, a decentralized exchange, burnt 14.6 ETH ($36K).

The cumulative impact of these burns over seven days showcases the high traffic levels on the Ethereum platform. Notably, as gas fees increase in tandem with network usage, DeFi initiatives play a crucial role in burning ETH, transforming these fees into a deflationary mechanism.

This continuous burn activity contributes to boosting investor confidence and further fuels the narrative of Ethereum transitioning into a deflationary asset. In the past week alone, $30.6M has been wiped out from the market, highlighting the deflationary pressures present in ETH that could influence its long-term trend.