ETH Burn Rate Hits Yearly Low on Ethereum Network
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
The Ethereum network has witnessed a significant drop in its ETH burn rate, reaching the lowest levels recorded this year.
The base fees for transactions, a key factor in determining the burn rate, have recently fluctuated between just 1 and 2 gwei, marking a substantial decline in network activity.
The decrease in gas fees has led to a corresponding reduction in the amount of ETH burned.
On Saturday, only 210 ETH were burned—a record low for the year.
This contrasts sharply with the 5,000 ETH burned on August 5, when gas fees spiked to around 100 gwei.
As a result of the lower burn rate, the network’s inflation has risen, with a net ETH emission of over 2,000 ETH on the same day.
Amid these developments, Gnosis founder Martin Köppelmann has suggested a temporary increase in the gas limit to counter the inflationary trend.
He noted that a base fee of approximately 23.9 gwei would be necessary to offset staking rewards, implying that increasing Layer 1 activity could be a viable strategy, even if it seems counterintuitive under current low-fee conditions.
The decline in gas fees is largely attributed to the migration of users to Layer 2 scaling solutions and the adoption of blob transactions introduced in the Dencun upgrade in March.
【ETH burn rate drops to lowest levels as gas fees hover at 2 gwei】
The daily amount of burned on the #Ethereum network has fallen to its lowest level this year, with base fees currently hovering between 1 and 2 gwei at the time of writing.
This decline in base gas fees… pic.twitter.com/5umz8n1LQY
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