🔷Activity on the Ethereum network has noticeably declined, leading to a sharp drop in ETH burn volumes — a key mechanism that reduces the overall supply of the cryptocurrency. Since the beginning of the year, burn volumes have plummeted by 95%, with a record low recorded on April 20. As a result, over 72,000 new ETH have entered circulation, increasing inflationary pressure and negatively impacting the price.
🔷The main reason for the decline is the user outflow to Layer 2 networks and alternative blockchains like Solana. While Ethereum fluctuates between $1,733 and $2,027, the asset’s future hinges on the return of network activity and the restoration of effective EIP-1559 operations.