Welcome to the latest edition of Cointelegraph’s decentralized finance newsletter.
ETH is burning at a rapid rate! Read on to discover the statistics behind Ethereum’s quest for deflationary mechanics.
What you are about to read is a shorter and more concise version of the newsletter. For a full rundown of DeFi developments over the past week, subscribe below.
$ 4.24 billion in ETH burned since EIP-1559 event
Blockchain analytics platform CryptoRank shared quantitative data this week that revealed that an excess of 1 million Ether (ETH), worth about $ 4.24 billion, has been burned since the August implementation of Ethereum Enhancement Proposal 1559. .
Also known as the London hard fork, the event marked a significant evolution of Ethereum’s fee structure, with each transaction burning a portion of the base fee. A simple case study of this process is the record of block 13,689,874, which cost the user 98 Gwei in gas rates and burned 0.68 ETH.
– CryptoRank Platform (@CryptoRank_io) November 24, 2021
As can be seen from the chart above, the world’s most popular non-fungible token market (NFT), OpenSea, has been the largest contributor to ETH burned at $ 467 million. This figure is closely followed by Ethereum and Uniswap v2 transfers, each of which has recorded $ 414 million and $ 393 million, respectively.
Despite the seismic exodus of token supply in recent months, Ethereum remains an inflationary asset, according to data by UltraSound. The platform reveals that, on an all-time perspective, 3.3 million ETH is burned each year compared to the 5.4 million ETH that is issued, a balance that results in supply growth of 1 , 8% per year.
However, when adjusting the parameters to a 30-day period, the data reports that the burning of ETH amounts to 4.7 million per year, while the supply growth is significantly reduced to 0.6%, data showing signs of progress towards deflation in the coming years.
Square Release Bitcoin Exchange Decentralized White Paper
The CEO of Twitter and payment service Square, Jack Dorsey, publicized the highly anticipated White paper this week, an initiative proposing to create a decentralized Bitcoin exchange, titled tbDEX.
Despite advocating a decentralized model, the platform will in fact differ from traditional decentralized exchanges in that users will have to enter Know Your Customer information. Once the user has submitted this personal data, only then will they be able to participate in the typical functionalities of Web 3.0 to connect wallets and trade digital assets.
The white paper cites stringent regulatory requirements as one of the rationales for adopting trustless infrastructure, but has provided strong assurances that the protocol will not be governed or accessible by any centralized entity, and that it will not be considered a utility token.
Instead of a trustless model, there will be a so-called “messaging protocol” that employs software, such as the public key infrastructure, widely on the Internet to build trust on the network. In light of this, the tbDEX white paper is considered an inaugural iteration, with the team requesting public comments and an open speech on their proposal.
“Our goal is resistance to censorship, permissionless access and maximization of competition for liquidity, with the ultimate goal of making it a commodity around the world … nothing in principle excludes anonymous transactions for the financial privacy on the tbDEX network “.
Grayscale imagines the metaverse as a $ 1 trillion opportunity
Cryptocurrency investment giant grayscale published a bullish report this week stating that the metaverse space is one of the biggest growth opportunities after a tenfold increase in active metaverse portfolios from early 2020 to June 2021.
Additionally, the researchers noted a multitude of factors that could instigate the growth of the sector, from an increase in leisure time among younger generations and cultural shifts in how we interact with technology to the advancement of gaming models to win Web 3.0. community centered. .
Co-authored by the firm’s head of research, David Grider, along with research analyst Matt Maximo, the report expresses technical optimism for the growth of metaverse worlds, concluding that the emerging market could expand to a $ 1 trillion valuation in the next few years, and citing Decentraland nine times to affirm this thesis.
“Compared to other Web 3.0 and Web 2.0 segments, Metaverse virtual world users are still in their infancy, but if current growth rates continue on their current trajectory, this emerging segment has the potential to become the mainstream for years to come. “
Analytics Data Reveals Total DeFi Locked Value Has Decreased 3.2% throughout the week to a figure of $ 154.59 billion.
Cointelegraph Markets Pro and TradingView Data Reveals Top 100 DeFi Tokens by Market Cap suffered downward declines in the last seven days.
The Basic Attention Token (BAT) evaded the market bloodshed this week to record 38.37% gains. Curve DAO Token (CRV) achieved a healthy 19.7%, while Ankr recorded similar results with 16.67%.
Analysis and hot topics from the last week:
Thanks for reading our roundup of this week’s most impactful DeFi developments. Join us again next Friday for more stories, ideas, and education in this dynamically moving space.