Daily Amount of ETH Burned on Ethereum Network Falls to Lowest Level in 2024

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The Ethereum network has recently experienced a significant decline in the daily amount of ETH burned, reaching its lowest level this year.

This can be attributed to the decrease in average gas fees, which are currently ranging between 5 and 10 gwei.

This is significantly lower compared to the first four months of the year when the daily amount of ETH burned remained above 2,500–3000 ETH.

The decline in fees can be attributed to the adoption of Layer 2 scaling solutions and the introduction of blob transactions through the Dencun upgrade in March, which has helped reduce transaction costs.

While lower fees benefit network users, the decrease in ETH burn impacts the deflationary aspect of Ethereum’s economic model.