Key Points
- The average transaction fee on the Ethereum network has increased despite a drop in active users.
- The burn rate of Ethereum has seen a significant increase over the past few weeks.
Despite a decrease in active users, the average transaction fee on the Ethereum network has seen a considerable surge.
Earlier this month, the average transaction fee fell below $1 for the first time in four years. The last time the network saw such low fees was in July 2020, prior to Ethereum transitioning to the proof-of-stake model via the Merge upgrade.
Recent Developments
However, recent data indicates a rise in the seven-day moving average transaction fee on Ethereum. As of Monday, the value stood at $3.52, more than triple the fee of $0.85 on September 1.
Simultaneously, Ethereum’s burn rate has also seen a spike. Over the past three weeks, the burn rate has increased by over 1600%, moving from 80.27 eth on September 1 to 1,360 eth on September 21.
The most significant gas consumption on the network over the last month has been from Uniswap’s smart contract. Other top consumers include Uniswap’s V2 variant and Telegram-based trading bots Maestro and Banana Gun. Transactions involving stablecoins such as Tether and Circle’s USD Coin also made the list.
A Decrease in Active Accounts
Interestingly, while transaction fees and burns have increased, the seven-day moving average of active accounts on the network has decreased. The current value stands at 385,000 accounts, marking an 11% dip from the beginning of the month and the lowest value since December 1, 2023.
These developments have led to concerns about Ethereum’s popularity among crypto enthusiasts. Matt Hougan, CIO of Bitwise, recently stated, “No one likes Ethereum right now.” This sentiment may be justified as the ratio of Ethereum to Bitcoin’s market cap hit its lowest value in three years last week. Although there has been a slight recovery, daily revenue for Ethereum stakers also recently hit a six-month low.
