{"id":152468,"date":"2023-09-09T02:14:21","date_gmt":"2023-09-08T20:44:21","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=152468"},"modified":"2023-09-09T02:14:21","modified_gmt":"2023-09-08T20:44:21","slug":"ether-turns-inflationary-as-on-chain-activity-slides-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/ether-turns-inflationary-as-on-chain-activity-slides-crypto-news\/","title":{"rendered":"Ether Turns Inflationary As On-chain Activity Slides – Crypto News"},"content":{"rendered":"

<\/p>\n

Deepening NFT Bear Market and Fading Memecoin Craze Contribute To Reduced ETH Burn Rate<\/p>\n

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Ethereum\u2019s on-chain activity receded this past week, with transaction fees dropping to an eight-month low.<\/p>\n

Data from Bit Info Charts shows average transaction fees on Ethereum dipped to their lowest level since January last weekend, with users paying less than $2.60<\/a> for simple token transfers. Average gas fees were just 9 gwei at the time of writing.<\/p>\n

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Average Ethereum transaction fees for simple transfers in USD<\/figcaption><\/figure>\n

<\/a><\/p>\n

Ethereum\u2019s falling transaction volume coincides with a deepening NFT bear market<\/a>.<\/p>\n

According to DappRadar, the value of combined monthly NFT trading across all networks is down 70%<\/a> since March at $559M, while transaction volume is down 45% at 3.2M.<\/p>\n

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\"Chart
Monthly NFT trade volume and sales count<\/figcaption><\/figure>\n

<\/a><\/p>\n

Spot trading volume on decentralized exchanges also dropped to its lowest level since December 2020 during August., according to data<\/a> from The Block.<\/p>\n

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\"Chart
Monthly DEX Volumes<\/figcaption><\/figure>\n

<\/a><\/p>\n

The slump in activity resulted in Ethereum\u2019s burn rate flipping negative, with 3,750 ETH entering circulation since the Ether supply tagged a record low of 120.213M on Sept. 1, according to Ultra Sound Money.<\/p>\n

Ethereum introduced a burn mechanism with the activation of EIP-1559<\/a> in August 2021, with ETH paid as base transaction fees permanently removed from circulation. With the rate of new Ether issuance falling approximately 90% following the network\u2019s transition to Proof of Stake<\/a> last September, the number of Ether in circulation was tipped to steadily fall.<\/p>\n

ETH\u2019s supply peaked at 120.53M in October 2022 and gradually fell to 120.43M by the end of April. The burn rate accelerated amid a frenzy of DEX-based memecoin trading, with 182,600 ETH \u2013 60% of all Ether destroyed \u2013 removed from supply between April 18 and June 1.<\/p>\n

<\/p>\n

\"Chart
Ethereum burn rate since The Merge<\/figcaption><\/figure>\n

<\/a><\/p>\n

However, activity has since plateaued, setting the stage for Ether\u2019s supply to trend higher this past week.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Deepening NFT Bear Market and Fading Memecoin Craze Contribute To Reduced ETH Burn Rate Ethereum\u2019s on-chain activity receded this past week, with transaction fees dropping to an eight-month low. Data from Bit Info Charts shows average transaction fees on Ethereum dipped to their lowest level since January last weekend, with users paying less than $2.60 […]<\/p>\n","protected":false},"author":2,"featured_media":152469,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-152468","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/152468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=152468"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/152468\/revisions"}],"predecessor-version":[{"id":152471,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/152468\/revisions\/152471"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/152469"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=152468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=152468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=152468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}