Ethereum's Burn Rate Hits All-Time Low
Ethereum’s daily ETH burn dropped to a record low on Saturday, with just 53.07 ETH destroyed due to transaction fees—worth around $106,000 at current prices. This decline signals a significant drop in demand for Ethereum’s blockspace.
Impact of EIP-1559 and Network Usage
The burn mechanism, introduced with EIP-1559, was designed to counteract inflation by burning base fees. However, the recent dip in burn rate suggests that fewer users are interacting with Ethereum, reducing fee volume. According to Ultrasound.money, Ethereum’s annual supply growth rate has increased to 0.76% based on current burn trends.
Broader On-Chain Activity in Decline
Other metrics have followed suit: active addresses, transaction counts, and new address creation are all trending downward. The seven-day moving average for active addresses just hit its lowest point since October 2024.
Analysts Adjust Ethereum Price Outlook
Standard Chartered has revised its ETH price forecast for 2025 down from $10,000 to $4,000, citing growing competition from Layer 2s like Base. “They now extract super-profits from the Ethereum ecosystem,” noted the bank’s head of digital assets, Geoffrey Kendrick.
