The Ethereum network has reached a new low in activity, with only 53.07 ETH, valued at approximately $106,000, burned on Saturday—marking the lowest daily burn since the implementation of its fee-burning mechanism through EIP-1559.
This decline signals a significant decrease in demand for Ethereum’s blockspace.
The EIP-1559 upgrade, which went live in 2021, was designed to streamline transaction fees while also reducing the overall supply of ETH by burning the base fee from each transaction.
High Network Activity Can Turn Ethereum Deflationary Under EIP-1559
This low burn rate coincides with a noticeable decline in on-chain activity.
Ethereum burn rate reaches a historic low with only 53 ETH (~$106K) eliminated from circulation on March 22. Network activity is also diminishing, with active addresses and transaction counts falling to multi-year lows. #Ethereum #Crypto pic.twitter.com/eDvz8JM4Vf
— TradeDucky (@tradeducky) March 24, 2025
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This positions the $5.8 trillion asset management firm alongside major players like BlackRock and Franklin Templeton, both of which are investigating real-world asset (RWA) tokenization.
This trend suggests that investors are opting to move ETH into cold storage, signifying a preference to hold assets rather than liquidate them.
The post Ethereum Burn Rate Hits All-Time Low, Signaling Drop in Network Demand appeared first on Cryptonews.
