Welcome to the latest edition of the decentralized finance newsletter from Cointelegraph.
ETH is burning at a rapid rate! Read on to find out the statistics behind Ethereum’s pursuit of deflationary mechanics.
What you are about to read is a shorter, more succinct version of the newsletter. For a full rundown of DeFi developments over the past week, subscribe below.
$ 4.24 billion worth of ETH burned since the EIP-1559 event
Blockchain analytics platform CryptoRank this week shared quantitative data that revealed that a million Ether (ETH) surplus, worth around $ 4.24 billion, has been burned since the August implementation of Ethereum Improvement Proposal 1559.
Also referred to as the London hard fork, the event marked a significant shift in Ethereum’s fee structure, such that each transaction consumes a portion of the base fee. A simple case study of this process is the registration of block 13,689,874, which cost the user 98 Gwei in gas costs and burnt 0.68 ETH.
– CryptoRank platform (@CryptoRank_io) November 24, 2021
As the chart above shows, the world’s most popular non-fungible token (NFT) market, OpenSea, was the biggest contributor to burnt ETH with $ 467 million. This figure is closely followed by Ethereum and Uniswap v2 transfers, which each recorded $ 414 million and $ 393 million, respectively.
Despite the seismic boom in token supply in recent months, Ethereum still remains an inflationary asset, according to The data by UltraSound. The platform reveals that, from a historical perspective, 3.3 million ETH is burned each year, compared to 5.4 million ETH issued, a balance that translates into a supply growth of 1.8. % per year.
However, tightening the parameters to a 30-day period, the data shows that ETH combustion totals 4.7 million per year, while supply growth is drastically reduced to 0.6%, information that both show signs of progress towards deflation in the coming years.
Square Releases Decentralized Bitcoin Exchange White Paper
Twitter and Square payments CEO Jack Dorsey took to the public for the highly anticipated Square white paper this week, an initiative that proposes to create a decentralized Bitcoin exchange, called tbDEX.
Although it advocates a decentralized model, the platform will actually be different from traditional decentralized exchanges in that users will need to enter Know Your Customer information. Once the user has submitted this personal data, only then will he be able to use the typical Web 3.0 functionalities of connecting wallets and trading digital assets.
The white paper cites stringent regulatory requirements as one of the fundamental reasons for adopting untrusted infrastructure, but provided strict assurances that the protocol will not be governed or accessed by a centralized entity in addition to not consider a utility token.
Instead of a no-trust model, there will be a so-called “messaging protocol” that uses software, such as public key infrastructure, widely on the Internet to promote network trust. In light of this, the tbDEX whitepaper is seen as an inaugural iteration, with the team seeking public comment and an open speech on their proposal.
“Our goal is to resist censorship, unauthorized access and to maximize competition for liquidity – with the ultimate goal of trivializing it around the world … nothing in principle prevents anonymous transactions for the financial privacy on the tbDEX network. “
Grayscale sees the metaverse as a $ 1 trillion opportunity
Crypto 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 through June 2021.
In addition, the researchers noted a host of factors that could drive the growth of the sector, ranging from an increase in leisure time among the younger generations and cultural changes in the way we interact with technology to the advancement of technology. community-centric Web 3.0 game models for winning. .
Co-authored by the company’s chief research officer David Grider alongside research analyst Matt Maximo, the report expresses technical optimism for the growth of metaverse worlds, concluding that the emerging market could reach a valuation of $ 1,000 billion over the next few years, and citing Decentraland nine times to support this thesis.
âCompared to other segments of Web 3.0 and Web 2.0, users of the Metaverse virtual world are still in their infancy, but if current growth rates remain on their current trajectory, this emerging segment has the potential to become mainstream. dominant in the years to come. “
Analytical data reveals total locked-in value of DeFi has declined 3.2% on the week for a figure of 154.59 billion dollars.
Cointelegraph Markets Pro and TradingView Data Reveals Top 100 DeFi Tokens By Market Cap suffered bearish declines through the last seven days.
The Basic Attention Token (BAT) escaped market bloodshed this week to post gains of 38.37%. Curve DAO Token (CRV) scored good 19.7%, while Ankr posted similar results with 16.67%.
Analysis and hot topics from last week:
Thanks for reading our roundup of this week’s most significant DeFi developments. Join us again next Friday for more stories, ideas and education in this dynamic evolving space.