ChainCatcher news, analysts from blockchain data analysis company CryptoQuant pointed out that the activity on the Ethereum chain has increased significantly, and the frequency of daily transactions and decentralized applications (dApps) has increased, leading to an increase in network fees. This trend drives changes in Ethereum’s supply and demand, and investor interest continues to surge.

At the same time, Ethereum’s burning mechanism accelerates the rate at which tokens are burned, thereby slowing supply growth. The combination of these factors has analysts predicting that Ethereum price could surpass $5,000 if the trend continues. Market observers need to pay close attention to on-chain data and market dynamics to better understand future trends.