Daily ETH burn hits all-time low as Ethereum's on-chain activity dips

The amount of ETH burned as a result of transaction fees hit an all-time low on Saturday, signaling a significantly reduced demand for Ethereum's blockspace. 

Ethereum's EIP-1559 change, which simplified the transaction fee process, also requires that the network burn all ETH used to pay the base transaction fee. The mechanism was designed to reduce inflationary pressure and potentially make Ethereum a deflationary asset during periods of high network activity.

Just 53.07 ETH, worth about $106,000 at current prices, was burned on Saturday, according to The Block's data, an all-time low value. The supply of ETH is expected to grow 0.76% per year taking the burn rate from the last 7 days into account, according to Ultrasound.money data . 

The low burn rate coincides with declines in other measures of activity on Ethereum, such as active addresses. The seven-day moving average of active addresses recently fell to the lowest value since Oct. 2024, according to The Block's data. New address creations , transaction counts , and daily volumes have also declined over recent weeks. 

Standard Chartered recently sharply lowered its 2025 price target for Ethereum from $10,000 to $4,000, as the network's Layer 2s grow in number and scale. "Layer 2s, and Base in particular, now extract super-profits from the Ethereum ecosystem," Standard Chartered's global head of digital assets research, Geoffrey Kendrick, previously said in a statement to The Block.