Ethereum’s decentralized finance (DeFi) ecosystem continues to drive significant network activity, with top projects burning 1,361 ETH in the past seven days. The cumulative fee burn, amounting to approximately $2.96 million, highlights the increasing demand for DeFi applications and their role in Ethereum’s deflationary mechanism.
TOP #ETHEREUM BURNER #DEFI PROJECTS#Metamask #Uniswap $UNI #Gnosis $GNO #1INCH #Aave $AAVE #Pendle #KyberSwap #0xProtocol $ZRX #Paraswap $HEX pic.twitter.com/1r05Jb4zfP
— PHOENIX – Crypto News & Analytics (@pnxgrp) March 9, 2025
According to data sourced from ultrasound. Money and shared by Phoenix Group, key DeFi protocols such as Metamask, Uniswap, and Gnosis have emerged as the largest contributors to Ethereum’s burn rate. Among the top Ethereum-burning projects, Metamask ranks first, having burned 24.3 ETH, valued at $52.8K, over the past seven days. The widely used non-custodial wallet facilitates countless Ethereum transactions, contributing significantly to on-chain activity and gas fees.
Uniswap, the leading decentralized exchange (DEX), follows closely behind with 21.7 ETH burned, translating to approximately $47.2K in fees. Uniswap’s high trading volumes and active liquidity pools make it a key driver of Ethereum network usage.
Other notable contributors include Gnosis (19.9 ETH, $43.3K), 1inch (19.8 ETH, $43.0K), and Aave (14.9 ETH, $32.4K). These platforms play essential roles in decentralized trading, smart contract execution, and lending protocols, further solidifying their importance in Ethereum’s economy.
Ethereum’s Deflationary Outlook and DeFi Burns
Beyond the major players, smaller DeFi protocols have also contributed to Ethereum’s deflationary process. Pendle, Kyber Network, 0x Protocol, ParaSwap, and Hex collectively burned over 21.6 ETH, with individual burns ranging from 3.6 to 4.6 ETH. Despite their lower burn rates than top-tier DeFi projects, these platforms remain crucial in enabling diverse, decentralized financial services, such as yield tokenization, cross-chain swaps, and permissionless trading.
The Ethereum burn mechanism, introduced through EIP-1559, reduces the circulating supply of ETH by permanently removing a portion of transaction fees. With DeFi activity remaining strong, the continued burning of ETH supports Ethereum’s shift toward a deflationary model.
As network demand grows, the impact of these fee burns becomes more pronounced, potentially increasing ETH’s scarcity and long-term value proposition. Ethereum’s transition to proof-of-stake (PoS) with the Merge has further reinforced this dynamic, as staking incentives and transaction fees drive sustained network participation.
The latest data underscores DeFi’s critical role in Ethereum’s economy. Leading platforms not only provide innovative financial solutions but also contribute to the ecosystem’s self-sustaining economic model. With DeFi adoption expected to rise, Ethereum’s burn rate could increase further in the coming months.
As transaction volumes remain high and adoption continues, the deflationary impact of these fee burns could play an increasingly significant role in shaping Ethereum’s long-term value. Investors and developers will be watching closely as DeFi projects evolve and contribute to Ethereum’s ever-expanding financial landscape.
