COINOTAG News reported on March 24th that the Ethereum network experienced a notable decline in activity, as evidenced by the mere 53.07 ETH burned on Saturday, translating to roughly $106,000 at current valuations. This reflects a significant downturn in the demand for Ethereum block space, a critical indicator for the network’s health.
The introduction of EIP-1559 fundamentally transformed Ethereum’s transaction fee model by mandating the burning of all ETH utilized for base fees. This protocol aims to mitigate inflationary tendencies, potentially allowing Ethereum to emerge as a deflationary asset during spikes in network usage.
Moreover, recent analytics reveal that the seven-day moving average of active addresses has plunged to levels not seen since October 2024. This trend is corroborated by a decline in new address registrations, transaction counts, and overall daily transaction volumes, indicating a broader slowdown within the Ethereum ecosystem.