This week saw a decline in Ethereum’s on-chain activity and a transaction cost low not seen in eight months.
Bit Info Charts data reveals that last weekend, average Ethereum transaction costs dropped to less than $2.60 for straightforward token transfers, the lowest amount since January. At the time this was written, a gallon of petrol cost an average of 9 gwei.
Total monthly NFT trade value has decreased 70% to $559M since March, while transaction volume has decreased 45% to 3.2M, as reported by DappRadar.
The Block reports that the amount of spot trading on decentralized exchanges hit a new low in August, the lowest level seen since December 2020.
Since the Ether supply hit a record low of 120.213M on September 1, just 3,750 ETH had been burned, making Ethereum’s burn rate negative, as reported by Ultra Sound Money.
When EIP-1559 went live in August 2021, Ethereum’s burn mechanism was activated, and all Ether (ETH) paid as basic transaction fees were withdrawn from circulation and never to be used again. It was predicted that the total supply of Ether would gradually decrease as the network switched to Proof of Stake in September of last year, cutting the pace of new issuance by around 90%.
In October 2022, the total supply of Ethereum was 120.53M, and by April of the following year, it had dropped to 120.43M. Between April 18 and June 1, 182,600 ETH, or 60% of all Ether lost, were withdrawn from supply, as the burn rate increased amid a flurry of DEX-based memecoin transactions.
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