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
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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.

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