Feeling Cold? ETH Daily Burn Hits All-Time Low, Active Address Count Drops to Six-Month Low

By: blockbeats|2025/03/24 17:15:03
0
Share
copy
Original Article Title: "Is Ethereum Being Left Behind? Daily Burn Rate Hits New Low, 'Disinflationary Asset,' ETH Active Addresses Hit Six-Month Low"
Original Article Author: James, BlockTempo from Dooqu Trending

When Ethereum implemented the London upgrade in August 2021, it introduced EIP-1559, which simplified the transaction fee mechanism and required the network to burn all ETH used to pay the base fee. The design purpose of this mechanism was to reduce inflationary pressure and potentially turn Ethereum into a deflationary asset during periods of high network activity.

Daily ETH Burn Rate Hits Historic Low

However, according to data from The Block, the Ethereum network only burned 53.07 ETH in a single day last Saturday, which, at the current price, is worth only about $10.6 thousand, setting a new historic low.

Feeling Cold? ETH Daily Burn Hits All-Time Low, Active Address Count Drops to Six-Month Low

Image Source: The Block

Additionally, according to data from Ultrasound.money, if the past seven days' burn rate is considered, the estimated annual supply growth rate of Ether would be 0.76%.

Image Source: Ultrasound.money

This low burn rate corresponds well with the decline in other Ethereum activity indicators, such as the number of active addresses. According to The Block's data, the seven-day moving average of active addresses has recently dropped to its lowest point since October 2024. New address creations, transaction counts, and daily transaction volumes have also seen declines in the past few weeks.

Image Source: The Block

Ethereum Foundation Considers Course Correction

During Ethereum's stagnation, Standard Chartered Bank recently significantly lowered its price forecast for Ethereum in 2025 from the original $10,000 to $4,000. This adjustment was due to the rapid growth of Ethereum's Layer 2 solutions in both number and scale.

In this report, Standard Chartered Bank points out that Ethereum is currently at a crossroads. While its various metrics still dominate the blockchain space, this dominance is gradually waning. Ethereum's proud Layer2 networks, originally intended to improve Ethereum's scalability, are now seen to have only Coinbase's Layer2 network, Base Chain, causing a $500 billion reduction in Ethereum's market cap.

To prevent this trend from continuing, Standard Chartered Bank suggests that the Ethereum Foundation needs to change its business direction, such as implementing taxes on Layer2. Additionally, if the tokenization market can experience significant growth, Ethereum may be able to maintain about an 80% share of security in this field, which could provide some support for Ethereum.

As Ethereum faces a trust crisis, Haseeb Qureshi, Managing Partner at Dragonfly, recently revealed that the Ethereum Foundation is actively responding to community feedback and considering adjusting its operational direction. The leadership is seriously contemplating how to draw lessons from other success stories, particularly Solana's Superteam model, shifting the focus from pure research to promoting project development and investment activities.

Original Article Link

-- Price

--

You may also like

Cryptocurrency CEXs are flocking to sell US stocks, and traditional brokerages are facing an "uninvited guest."

The major reshuffle has just begun.

Will the SpaceX IPO Hurt Bitcoin? Here's What Traders Are Watching

What is the SpaceX IPO, and how could it affect Bitcoin prices? As SpaceX prepares for its historic Nasdaq debut, crypto traders are watching for potential liquidity shifts and market volatility.

Foreign selling in the South Korean stock market accelerates, with cumulative net sales reportedly reaching $75 billion this year

On June 9, The Kobeissi Letter, citing Goldman Sachs data, reported that global investors are selling South Korean stocks at an unusually rapid pace. In the latest trading session, foreign investors sold about $801 million worth of Kospi constituent stocks again; total foreign outflows last week reached about $10 billion, and the market has been in net foreign selling on nearly every trading day over the past month. According to the data cited in the report, foreign investors have sold about $75 billion worth of South Korean stocks so far this year. Meanwhile, South Korean retail and institutional investors together recorded roughly $69 billion in net buying over the same period, suggesting that the market’s main buying support has come from domestic capital rather than returning overseas funds. The information currently disclosed still mainly comes from The Kobeissi Letter’s retelling and Goldman Sachs data summaries, while public details on the statistical period and the specific definition of “selling” remain relatively limited.

Fortune Warns of Strategy’s Financing Structure Risks as Bitcoin Premium Narrows

Fortune warned that Strategy’s Bitcoin treasury model faces growing financing risks as MSTR’s net asset premium narrows and preferred stock dividend pressure increases.

Ferrari Challenge Le Mans: Carl Moon to Dominate in WEEX Livery

The art of absolute control. Inside Carl Moon’s Ferrari 296 Challenge quest at Le Mans, taming the storm together with the official WEEX livery.

Sahara AI Responds to SAHARA’s Sharp Drop: No Contract or Product Security Issues Found, Internal Investigation Underway

Sahara AI responded to SAHARA’s 60% price drop, saying no token contract or product security issues have been found and an internal investigation is underway.

Contents

Popular coins

Latest Crypto News

Read more
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com