DeFi Platforms Driving Ethereum Fee Burning and Value Stability

Estimated reading time: 4 minutes

• DeFi platforms burned a total of $5.48 million worth of ETH in early June 2025.
• Uniswap was a significant player in Ethereum’s fee burning, responsible for about 90 ETH in burns during one week.
• The increase in fee burning has correlated with an EP price increase of 46% over 30 days.
• Ethereum’s market capitalization reached $316 billion, driven by DeFi activity and fee burning.
• Platforms are implementing measures to keep gas fees affordable despite the ongoing burn process.

Decentralized finance (DeFi) platforms have become significant contributors to Ethereum’s fee burning mechanism, which plays a growing role in the network’s price stability and structure. Recent data shows that activity on these platforms is directly affecting the supply and economic dynamics of ETH.

Fee Burning Trends

During the week leading up to June 9, 2025, DeFi applications burned a combined $5.48 million worth of ETH, reflecting ongoing use of the network[1]. Uniswap was the leading platform, responsible for about 90 ETH in burns, valued at $226,400 over that period[2]. This illustrates Uniswap’s influence on the shrinking of Ethereum’s available supply.

This trend extends over several weeks. From April 20 to April 27, 2025, DeFi projects collectively burned 1,315 ETH, which equaled roughly $2.38 million[3]. Uniswap led with 20.5 ETH burned (about $37,100), followed by MetaMask with 18.1 ETH ($32,700)[4]. By late May, DeFi-related burning surpassed $4 million in a single week, with Uniswap retaining the leading role[5]. Sector-wide figures show that by early June, DeFi platforms had burned $22.4 million worth of ETH, with Uniswap and MetaMask accounting for the majority of this total[6].

Interaction With Market Performance

The increase in fee burning has taken place as Ethereum’s price has risen. As of May 31, 2025, ETH’s price grew by 46% over 30 days, outpacing Bitcoin, DeFi tokens, AI assets, and meme coins[7]. Since the beginning of May, Ethereum’s price increased by 42%, compared to Bitcoin’s gain of 11.7% during the same timeframe[8].

Ethereum’s market capitalization reached $316 billion, leading other major cryptocurrencies in month-over-month growth[9]. In contrast, the wider smart contract sector saw an 8.1% increase. Data suggests that Ethereum’s recent gains are supported by its network’s use and the deflationary effects from fee burning, rather than broader market optimism alone[10].

Fee Burning Mechanism

Ethereum’s burn process operates under the EIP-1559 protocol, which removes a portion of network transaction fees. This includes activities such as trading on decentralized exchanges, using DeFi lending services, or minting NFTs. As on-chain transactions increase, so do the deflationary effects, which can influence price movements even without widespread speculation[11].

Leading Platforms

Uniswap remains the top decentralized exchange in terms of both trading volume and ETH burned[12]. MetaMask, a widely used Web3 wallet, is another major burner, indicating substantial involvement from individual cryptocurrency users[13]. Newer protocols such as Pendle and Space and Time are also participating in this trend, suggesting an increase in activity by emerging DeFi projects[14].

The notable participation of retail-focused apps like MetaMask shows that everyday users, not just large traders or institutions, are helping drive the continued reduction in Ethereum’s supply[15].

Addressing Usability and Fee Costs

The process of burning fees can increase gas costs for users. In response, many DeFi platforms have introduced measures to keep network use affordable. These include offering gas rebates, zero-gas events, and fee-sharing models[16]. Such incentives can help minimize or offset transaction costs, especially for newer or less frequent users[17]. Many platforms fund these efforts with protocol treasuries, collaborations with Layer 2 solutions like Arbitrum and Optimism, or through meta-transaction services that cover fees for users[18].

This approach seeks to maintain Ethereum’s value through fee burning while also addressing accessibility for users. As DeFi continues to play a central role, the Ethereum ecosystem remains focused on balancing supply reduction with network usability.

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1. CoinStats, June 9, 2025, “Top DeFi Projects Burn $5.48M ETH Past Week Led by Uniswap, MetaMask, 1inch & Others” (https://coinstats.app/news/69b6d3ac75bdcccac30db75c7a57116ff252c01cd913a2e0cf613d4c1610de30_Top-DeFi-Projects-Burn-548M-ETH-Past-Week-Led-by-Uniswap-MetaMask-1inch–Others)
2. CoinStats, June 9, 2025, ibid.
3. CoinStats, April 27, 2025, “DeFi Platforms Drive Ethereum Fee Burns as Network Usage Holds Steady” (https://coinstats.app/news/5e3a15ab13ee7bd3a92504f7f25dfb47f62c2992ba868ae47072292354b9b08f_DeFi-Platforms-Drive-Ethereum-Fee-Burns-as-Network-Usage-Holds-Steady/)
4. CoinStats, April 27, 2025, ibid.
5. Binance, May 2025, “DeFi Platforms Burned Over $4 Million ETH in a Week” (https://www.binance.com/en/square/post/24731228788450)
6. CryptoNews.net, June 2025, “DeFi Platforms Drive Ethereum Fee Burns” (https://cryptonews.net/news/defi/31027563/)
7. CryptoNews.net, June 2025, ibid.
8. CryptoNews.net, June 2025, ibid.
9. CryptoNews.net, June 2025, ibid.
10. CryptoNews.net, June 2025, ibid.
11. CryptoNews.net, June 2025, ibid.
12. CryptoNews.net, June 2025, ibid.
13. CoinStats, April 27, 2025, ibid.
14. CryptoNews.net, June 2025, ibid.
15. CryptoNews.net, June 2025, ibid.
16. The Luxury Playbook, June 2025, “Best Strategies to Avoid Ethereum Gas Fees” (https://theluxuryplaybook.com/best-strategies-to-avoid-ethereum-gas-fees/)
17. The Luxury Playbook, June 2025, ibid.
18. The Luxury Playbook, June 2025, ibid.