In just the past 30 days, the global ETH supply has increased by nearly 30,000 ETH, or about $47.9 million, according to data aggregator ultrasound.money. The reason for this is due to a noticeable decrease in activity on the Ethereum network, with both NFT and DeFi trading exhausted.
Since 2021, Ethereum operates on a fee burning mechanism, meaning that the more traffic on the network, the more gas prices - which are required to complete on-chain transactions - increase. And once gas prices increase sharply, it means more ETH is burned by the network or in other words, permanently removed from circulation.
Ethereum gas fees have recently dropped significantly, averaging around 7 gwei, just $0.24. An average transaction on NFT marketplace OpenSea costs less than 1 USD. While just over a year ago, during the sale of Yuga Labs' Otherside collection in May, users burned over $157 million in ETH just to mint 55,000 NFT lots, the average person spent to 2,854 USD to pay gas for one transaction.
Average gas fees over the past 30 days. Source: Ultrasound.money
In the last 30 days, more than 38,360 ETH in transaction fees have been burned, coming mainly from transfers of ETH and stablecoin USDT, DEX Uniswap and layer-2 like zkSync Era...
