Recently, the deflationary logic of Walrus has been interesting to observe. The average monthly destruction of WAL has exceeded 120,000 tokens, a 50% increase compared to the beginning of the year. This is not just simple buyback and burn, but driven by real business scenarios.

The key lies in its sources of destruction—every storage transaction, data interaction, and application deployment triggers destruction, with the destruction ratio dynamically adjusting according to ecosystem activity. In Q4 2025, the peak monthly destruction reached 150,000 tokens, supported by high-frequency applications such as AI storage, RWA rights confirmation, and cross-border data compliance gradually being implemented.

Data shows that institutional deployment is accelerating. A leading trust holding increased its holdings by 30% month-over-month, and a well-known venture capital firm has also entered strategically. What does this indicate? Mainly, a positive outlook on the actual application progress of the ecosystem. Currently, over a hundred applications are connected to the ecosystem, forming a complete chain from storage and data to application.

There are also new developments in technological upgrades. After the mainnet V2, a new "Destruction Mining" mechanism was added, allowing users to participate in ecosystem contribution and directly earn rewards. This effectively combines destruction and incentives. Based on current growth rates, destruction in Q1 could double, making the deflationary effect more pronounced.

This model is indeed more solid compared to relying solely on buybacks. Real demand drives destruction, applications expand, and the ecosystem self-reinforces—this logical chain is tightly closed. The application deployment in 2026 will be a key point to watch.