02-08-2023 icon

Activities on the Ethereum Network Intensifies

By Lucy Adegbe

Activities on the Ethereum network keep rising, with Uniswap, a popular decentralized exchange taking the lead.

This report by Blockworks notes that Ethereum is entering its fourth week of deflationary issuance as the network’s usage increases.

The rate of deflationary issuance for crypto indicates that the number of tokens being burned is greater than the number being minted. Moreover, the implication is that the token is limited in supply compared to its demand, hence increasing purchasing power of crypto.

The increased activity on a decentralized platform could be a strong indication that more people are turning toward decentralized finance. Blockworks indicates that this development could be a consequence of the downfall of a plethora of centralized exchanges last year.

According to the CEO and co-founder of Euler, “Following protocol upgrades last year, Ethereum has an in-built fee burning mechanism that ensures that the more people transact on the network, the more ETH gets burned,” Bentley stated.

“There’s so much activity on Ethereum in early 2023 that ETH itself is becoming more and more scarce, and has never recently become a deflationary asset,” Bentley added. 

Moreover, the past week has seen the exchange Uniswap burn nearly 2,500 ETH. Subsequently, leading the burn leaderboard, according to Blockworks.

Uniswap is the second-largest decentralized exchange in DeFi in terms of the total value. Conversely, it is the leader in 24-hour trading volume, with an incredible $1.78 billion.