Meme Coins Boost ETH Burn Rate: Stats Revealed

The popularity of meme coins has caused a surge in activity on the Ethereum (ETH) network, resulting in an increase in ETH burn rate. As more meme coins are released and gain traction, the new proof-of-stake system of the Ethereum network is experiencing high burning fees.

Meme Coins Lead to 37,000 ETH Burn

Over the past month, meme coins have become increasingly popular within crypto circles. This increased volume has inadvertently led to a rise in ETH burn rate. According to Ultrasound Money – a website dedicated to tracking Ethereum’s activities post-Merge – since its merge occurred 231 days ago, there has been a total of 561,656 ETH burned so far.

Looking at shorter time frames reveals that over 130,852 ETH was burned during just one month alone. This means around 23% of all burnt ETH happened within this period due to heightened activity on the network.

Gas fees lead to higher burn rates | Source: Ultrasound Money

In essence, as more people use the Ethereum network for transactions or other purposes such as smart contractsSponsored Product or NFTs (non-fungible tokens), bids for block space increases which translates into higher gas fees paid by users who want their transactions confirmed faster than others. The higher these bids go up; it leads to more ETH being burned, which in turn leads to an increase in the burn rate.

The largest burns have taken place on Uniswap – the biggest decentralized exchange (DEX) on Ethereum. Ultrasound Money shows that approximately 32,800 ETH was burned by transactions on this DEX within just a month alone. This accelerated burn rate has not slowed down either with over 45,000 ETH burned during the last seven days. As a result, the current burn rate is at 4.53 ETH per minute with an issuance offset rate of 3.47x.

Ethereum Dominates DeFi

Meme coins are often associated with Ethereum and its network due to their popularity among users who prefer it for new projects such as PEPE, WOJAK and TURBO launched within one month alone; these coins generated over $3 billion in cumulative tradingSponsored Product volume so far.

As long as gas fees remain high and meme coin trends continue to rise, we can expect further increases in ETH fee burns leading to more tokens being removed from circulation – ultimately resulting in bullish price movements for Ethereum going forward.

Ethereum price recovers above $1,900 | Source:ETHUSDonTradingView.com