19 February 2023 18:50, UTC
Reading time: ~2 m
NFT marketplace aggregator Blur.io has surpassed Uniswap, OpenSea, and Etherum transactions as the top ETH burner over the past 24 hours.
Data shared by Access Protocol CEO Mika Honkasalo from Ultrasoundmoney highlighted that over 252 ETH was burned as a result of Blur.io activity between Feb. 18 and Feb. 19. Furthermore, the two contracts identified by Ultrasoundmoney combined to a total of 310.7 ETH compared to 239.39 ETH and 177.8 ETH from Uniswap and OpenSea, respectively.
Ethereum burn mechanics
A base fee is paid by the sender of an ETH transaction and then burned to reduce the overall supply of ETH. This burn mechanic reduces the overall supply of ETH over time with the implication of increasing its scarcity and potentially increasing its value.
Burning the base fee, introduced in EIP-1559, also helps create a more stable fee market on the network. As the base fee is dynamically adjusted based on network congestion, burning the fee helps to ensure that the fee market remains stable and that fees do not become excessively high or volatile.
Burn by sector
Blur.io is also closing in on a 30-day timeframe which sees Uniswap and OpenSea top the charts with a combined 14,273 ETH burned in the past month. In addition, Blur.io was responsible for burning 3,012 ETH across the same period.
Furthermore, the NFT sector took up 23% of the burned ETH over the past 30 days with 18,666 ETH. Comparingly, the DeFi sector took the majority at 32%, with a total of 25,403 ETH burned. However, in the past 24 hours, NFT transactions have burned 549 ETH, and DeFi burned 690 ETH.
Overall, the data suggests that both the NFT and DeFi sectors are significant contributors to ETH burn activity, with the Blur.io marketplace emerging as a new notable player in the space.