• The success of the PEPE meme coin has led to an increased demand for Ethereum (ETH), resulting in a rapid burn rate.
• Data from Ultrasound Money shows that 561,656 ETH has been burned since the Merge occurred 231 days ago and 130,852 ETH has been burned in the last 30 days.
• Ethereum is dominating DeFi with a 24-hour volume of $1.12 billion.
Success of Meme Coin Leads to Rapid Burn Rate on Ethereum Network
The success of the PEPE meme coin has caused a rapid burn rate on the Ethereum (ETH) network. Following its success, many other coins have tried to copy it and as more coins are released, volume and fees have risen rapidly due to the new proof of stake system adopted by Ethereum.
Burn Rate Increases Over Last Month
Data from Ultrasound Money – a website dedicated to monitoring Ethereum’s activities post-Merge – shows that a total of 561,656 ETH has been burned since the Merge occurred 231 days ago. Zooming out to a shorter time frame of 30 days shows that over 130,852 ETH has been burned in this period. This accounts for around 23% of all burned ETH so far, triggered by larger activity on the network which leads to higher bids for block space and higher gas fees for faster transactions. Most of this burning was done on Uniswap, the largest decentralized exchange on the network where 32,800 ETH was burned in 30 days alone. The total burn rate now stands at 4.53 ETH per minute with an issuance offset rate of 3.47x.
Ethereum Dominates DeFi Space
The meme coin trend has always been led by Ethereum even back in 2021 and this time is no different with most volume coming from its network right now which makes sense given its 24-hour volume of $1.12 billion currently dominating DeFi space today..
Increased Activity Causes Higher Gas Fees
As more activity increases on the Ethereum network it causes higher bids for block space which translates into higher gas fees as users try to get their transactions confirmed faster than ever before leading to higher burns rates on Ethereum’s network as well as Uniswap – where 45,000 ETH was burned just in 7 days alone!
The meme coin trend is taking crypto world by storm and this increased activity seems like it won’t be slowing down anytime soon resulting in high burn rates across both Uniswap and Ethereum’s networks as well as unprecedented levels when compared against normal market activity making it clear that these two cryptocurrencies are major players when it comes crypto trading today!