• The success of the PEPE meme coin has caused a rapid burn rate on the Ethereum (ETH) network.
• This increase in activity has led to an increase in gas fees and an ETH burn rate of 561,656 ETH over 231 days.
• Ethereum is dominating the DeFi space with 24-hour volume of $1.12 billion.
The Success Of The PEPE Meme Coin
The success of the PEPE meme coin has triggered a rapid burn rate on the Ethereum (ETH) network. Following its success, there have been other coins that have attempted to copy it and as more coins are released, more volume is present on the network. This new proof of stake system on Ethereum has caused gas fees to rise as users try to get their transactions confirmed faster.
Meme Coins Trigger 37,000 ETH Burn
Meme coins have become increasingly popular over the last month and this increased volume has inadvertently led to an increase in the ETH burn rate. Data from Ultrasound Money shows that a total of 561,656 ETH has been burned since Merge occurred 231 days ago. In just 30 days, 130,852 ETH was burned which accounts for 23% of all burned ETH so far. Uniswap -the largest decentralized exchange on the network- alone accounted for 32,800 ETH burned in 30 days with 45,000 ETH being burned in 7 days. As a result, the burn rate now sits at 4.53 ETH per minute with an issuance offset rate of 3.47x.
Ethereum Continues To Dominate DeFi
The meme coin trend continues to be led by Ethereum even back in 2021 and this time is no different as it dominates most meme coin volumes right now bringing its 24-hour volume up to $1.12 billion dollars .
Increased Activity On The Network
The higher bids for block space that come from increased activity leads to more Ether being burnt when transactions are processed . Rinse and repeat .
With all these factors combined , it’s no wonder why Ethereum continues to dominate DeFi with its high 24-hour volume and accelerated burn rates . Its popularity among users makes it one of the most sought after digital currencies available today .