Ethereum Burning at Lowest Level
Burning Ethereum at the lowest level in 4 months!
In recent months, the Ethereum network has seen a significant decrease in the amount of ETH burned daily, reaching its lowest level this year. What caused this trend? The main reason is the recent drop in average gas fees.
Currently, gas fees range between 5 and 10 gwei, which is one of the lowest levels in history. This decrease has directly impacted the emission of ETH, resulting in less burning.
On Sunday, the amount of ETH burned was only 610 ETH, which is a record low this year. In comparison, in the first four months of this year, the daily amount of ETH burned ranged from 2500 to 3000 ETH.
The drop in gas fees is partly due to the migration of operations to layer 2 scaling solutions and increasing adoption of blockchain transactions. These changes were introduced with the Dencun update in March and help reduce transaction costs.
Gas fees and the dynamics of ETH burning are key elements of Ethereum's economic model. While lower fees benefit users, the decrease in ETH burning affects Ethereum's deflationary aspects.
