Feeling Cold? ETH Daily Burn Hits All-Time Low, Active Address Count Drops to Six-Month Low
Original Article Title: "Is Ethereum Being Left Behind? Daily Burn Rate Hits New Low, 'Disinflationary Asset,' ETH Active Addresses Hit Six-Month Low"
Original Article Author: James, BlockTempo from Dooqu Trending
When Ethereum implemented the London upgrade in August 2021, it introduced EIP-1559, which simplified the transaction fee mechanism and required the network to burn all ETH used to pay the base fee. The design purpose of this mechanism was to reduce inflationary pressure and potentially turn Ethereum into a deflationary asset during periods of high network activity.
Daily ETH Burn Rate Hits Historic Low
However, according to data from The Block, the Ethereum network only burned 53.07 ETH in a single day last Saturday, which, at the current price, is worth only about $10.6 thousand, setting a new historic low.

Image Source: The Block
Additionally, according to data from Ultrasound.money, if the past seven days' burn rate is considered, the estimated annual supply growth rate of Ether would be 0.76%.

Image Source: Ultrasound.money
This low burn rate corresponds well with the decline in other Ethereum activity indicators, such as the number of active addresses. According to The Block's data, the seven-day moving average of active addresses has recently dropped to its lowest point since October 2024. New address creations, transaction counts, and daily transaction volumes have also seen declines in the past few weeks.

Image Source: The Block
Ethereum Foundation Considers Course Correction
During Ethereum's stagnation, Standard Chartered Bank recently significantly lowered its price forecast for Ethereum in 2025 from the original $10,000 to $4,000. This adjustment was due to the rapid growth of Ethereum's Layer 2 solutions in both number and scale.
In this report, Standard Chartered Bank points out that Ethereum is currently at a crossroads. While its various metrics still dominate the blockchain space, this dominance is gradually waning. Ethereum's proud Layer2 networks, originally intended to improve Ethereum's scalability, are now seen to have only Coinbase's Layer2 network, Base Chain, causing a $500 billion reduction in Ethereum's market cap.
To prevent this trend from continuing, Standard Chartered Bank suggests that the Ethereum Foundation needs to change its business direction, such as implementing taxes on Layer2. Additionally, if the tokenization market can experience significant growth, Ethereum may be able to maintain about an 80% share of security in this field, which could provide some support for Ethereum.
As Ethereum faces a trust crisis, Haseeb Qureshi, Managing Partner at Dragonfly, recently revealed that the Ethereum Foundation is actively responding to community feedback and considering adjusting its operational direction. The leadership is seriously contemplating how to draw lessons from other success stories, particularly Solana's Superteam model, shifting the focus from pure research to promoting project development and investment activities.
You may also like
$15K+ Profits: The 4 AI Trading Secrets WEEX Hackathon Prelim Winners Used to Dominate Volatile Crypto Markets
How WEEX Hackathon's top AI trading strategies made $15K+ in crypto markets: 4 proven rules for ETH/BTC trading, market structure analysis, and risk management in volatile conditions.

A nearly 20% one-day plunge, how long has it been since you last saw a $60,000 Bitcoin?

Raoul Pal: I've seen every single panic, and they are never the end.

Key Market Information Discrepancy on February 6th - A Must-Read! | Alpha Morning Report

2026 Crypto Industry's First Snowfall

The Harsh Reality Behind the $26 Billion Crypto Liquidation: Liquidity Is Killing the Market

Why Is Gold, US Stocks, Bitcoin All Falling?

Key Market Intelligence for February 5th, how much did you miss out on?

Wintermute: By 2026, crypto had gradually become the settlement layer of the Internet economy

Tether Q4 2025 Report: USDT Market Cap Nears $190 Billion, Multiple Metrics Reach All-Time Highs

Kyle Samani's about-face, one of the biggest believers in web3, has also left the industry

Bhutan Quietly Sells Over $22M in Bitcoin, Drawing Speculation Over Possible Moves
Key Takeaways Bhutan has transferred over $22 million in Bitcoin from sovereign wallets in the past week. The…

BitMine Endures a $7B Unrealized Loss as Ethereum Dips Below $2,100
Key Takeaways BitMine is facing a significant financial challenge with an unrealized loss of over $7 billion in…

Trump-Linked World Liberty Financial Under Scrutiny Following $500 Million UAE Stake
Key Takeaways A U.S. House investigation is examining a $500 million UAE stake in Trump-related World Liberty Financial.…

Asia Market Open: Bitcoin Tumbles as Asian Equities Reflect Global Tech Retreat
Key Takeaways: Bitcoin’s price plunged by 6% to $72,000, reflecting the spillover effects from the global tech sector’s…

Crypto Firms Propose Concessions to Banks as Stablecoin Disputes Stall Key Crypto Bill
Key Takeaways: Crypto companies are attempting to navigate stablecoin disputes with banks but agreements remain elusive. Industry representatives…

CoolWallet Introduces TRON Energy Rental to Minimize TRX Transaction Costs
Key Takeaways CoolWallet has integrated TRON’s energy rental services, offering users lower transaction fees while maintaining asset security.…

CFTC Officially Withdraws Biden-Era Proposal to Ban Political and Sports Prediction Markets
Key Takeaways: The CFTC has rescinded a 2024 proposal and subsequent 2025 advisory that aimed to prohibit event…
$15K+ Profits: The 4 AI Trading Secrets WEEX Hackathon Prelim Winners Used to Dominate Volatile Crypto Markets
How WEEX Hackathon's top AI trading strategies made $15K+ in crypto markets: 4 proven rules for ETH/BTC trading, market structure analysis, and risk management in volatile conditions.