1M ETH burned since EIP-1559, and Dorsey drops tbDEX white paper, Nov. 19–26


Welcome to the latest edition of Cointelegraph’s Decentralized Financial Newsletter.

The ETH is burning at a rapid pace! Read on to discover the stats behind Ethereum’s pursuit of deflationary mechanisms.

What you’re about to read is a shorter, more concise version of the newsletter. For a full round-up of DeFi’s developments over the past week, subscribe below.

$ 4.24 billion in ETH burned since the EIP-1559 event

The blockchain analytics platform CryptoRank shared quantitative data this week showing that it has burned a surplus of 1 million ethers (ETH) worth about $ 4.24 billion since the Ethereum Improvement Proposal was implemented in August 1559.

The event, also known as the London Hard Fork, marked a significant evolution in Ethereum’s fee structure, with every transaction burning off part 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 charges and burned 0.68 ETH.

The @ethereum transaction fee incineration mechanism has removed #ETH 1M from circulation on the network since it went into effect.

https://t.co/oLDJyg9PyC pic.twitter.com/FwkmI8lL6x

– CryptoRank platform (@CryptoRank_io) November 24, 2021

As can be seen in the graphic above, the world’s most popular non-fungible token (NFT) marketplace, OpenSea, made the largest contribution to the ETH burned at $ 467 million. That number is closely followed by Ethereum transfers and Uniswap v2, which hit $ 414 million and $ 393 million, respectively.

Despite the seismic exodus of token supply in recent months, Ethereum still remains an inflationary asset, according to data from UltraSound. The platform shows that in an all-time perspective, 3.3 million ETH are burned each year compared to 5.4 million ETH spent, resulting in a supply growth of 1.8% per year.

By tightening the parameters to a period of 30 days, however, the data show that ETH burns total 4.7 million per year, while supply growth is significantly reduced by 0.6%.

Square publishes whitepaper on decentralized bitcoin exchange

The CEO of Twitter and the payment service company Square, Jack Dorsey, released Square’s much-anticipated white paper this week, an initiative proposing the creation of a decentralized bitcoin exchange called tbDEX.

While advocating a decentralized model, the platform actually differs from traditional decentralized exchanges in that it requires users to enter know-your-customer information. Only when the user has transmitted this personal data can he use the typical Web 3.0 functionalities for connecting wallets and trading in digital assets.

The whitepaper names strict regulatory requirements as one of the fundamental reasons for introducing an untrusted infrastructure, but has given strict assurances that the protocol is not managed or accessible by any centralized entity and no utility token is considered.

Instead of a trustworthy model, there will be a so-called “messaging protocol” that uses software such as the public key infrastructure far beyond the Internet to promote trust in the network. With this in mind, the tbDEX whitepaper is viewed as the first iteration, in which the team asks for public comments and an open discussion on its proposal.

“Our goal is censorship resistance, unauthorized access and the maximization of competition for liquidity – with the ultimate goal of marketing it worldwide … nothing fundamentally excludes anonymous transactions for financial privacy in the tbDEX network.”

Grayscale envisions the Metaverse as a $ 1 trillion opportunity

Crypto investment giant Grayscale released an bullish report this week declaring Metaverse space one of its greatest growth opportunities after active Metaverse wallets increased tenfold from early 2020 to June 2021.

Additionally, researchers identified a variety of factors that could fuel the growth of the sector, from an increase in the leisure time of younger generations and cultural changes in the way we interact with technology, to the advancement of community-centric Web 3.0 -Play to earn.

Written by the company’s chief researcher David Grider and research analyst Matt Maximo, the report expresses technical optimism for the growth of metaverse worlds and concludes that the emerging market will reach a valuation of $ 1 trillion in the coming years. Dollar could grow, and He cited Decentraland on nine occasions to support this thesis.

“Compared to other Web 3.0 and Web 2.0 segments, users of the Metaverse virtual world are still in their infancy, but if current growth rates stay on their current path, this emerging segment has the potential to become To become mainstream. “

Token services

Analytical data shows that the total banned DeFi score has decreased 3.2% over the week to $ 154.59 billion.

Data from Cointelegraph Markets Pro and TradingView shows DeFi’s top 100 tokens by market capitalization suffered bearish declines the last seven days.

Basic Attention Token (BAT) avoided the bloodshed of the market this week, posting gains of 38.37%. Curve DAO Token (CRV) reached a healthy one 19.7% while Ankr achieved similar results with 16.67%.

Analysis and hot topics of the last week:

Thank you for reading our roundup of this week’s most influential DeFi developments. Visit us again next Friday for more stories, insights, and education in this dynamically evolving space.

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