Ethereum Faces Decline in Developer Activity, But DeFi Projects Boost ETH Burn

Recent developments in the Ethereum blockchain ecosystem reveal a decline in developer activity, raising concerns about its future growth. However, the significant burning of ETH due to DeFi protocols offers a potential upside for Ethereum’s price.

Decline in Developer Activity Across Major Blockchain Ecosystems

Development activity on Ethereum, the most active blockchain space with 165.7K developer events, decreased by 11.8% during this period. The number of developer event contributors also decreased by 2.54% to 1.7K. Similarly, BNB Chain’s development activity declined by 16.25% after recording 71.5K events, while Polygon’s development events decreased by 21.87% to 66.8K.

Ethereum DeFi Projects Contribute to Significant ETH Burn

DeFi projects have burned 1,361 ETH in just seven days and 3,796 ETH in 30 days, illustrating Ethereum’s deflationary trend. Uniswap, MetaMask, and Gnosis led the burning activity, with mid-tier platforms like Pendle and Kyber also participating. According to Ultrasound.money, the burned Ether is worth $6.95 million. A tweet by Phoenix Group shows that major DeFi apps are continually using gas fees, proving Ethereum’s activity. Uniswap topped the list with the highest network fee burn.

Top NFT Sales of March 2025: CryptoPunk Maintains Leading Position

The ever-evolving DeFi sector has recently seen a notable advancement in the NFT space. As per the data from Phoenix Group, the top NFT sales of March include CryptoPunk and Azuki as the key collections. CryptoPunk #2967 dominated March’s NFT top 10 sales, being sold for 420 ETH ($842.64K). This sale accounted for a significant portion of the month’s largest transactions in the NFT market.

Ethereum Price Weakens, Risk of More Losses

Ethereum price started another decline and traded below the $1,880 level. The cryptocurrency struggled to continue higher above the $2,000 resistance level and is now consolidating. There is a connecting bearish trend line forming with resistance at $1,820. The price must clear the $1,820 and $1,880 resistance levels to start a decent increase. ETH declined below the $1,920 and $1,880 support levels and tested the $1,765 zone, forming a low at $1,767. Recently, there was a move above the $1,800 level.