🔍The mystery of Ethereum's plummeting base fee and the decline in ETH destruction
📉The Ethereum network has been a bit turbulent recently, and the amount of ETH destroyed has dropped significantly. According to data from "Ultra sound Money ", only 210 ETH were destroyed on August 10, which is the lowest record since 2024!
🚨 Data shows that Ethereum's base fee once fell to 0.8 Gwei, which is the lowest in many years. However, on August 5, the base fee once soared to 100 Gwei, and the amount of ETH destroyed in one day could reach 5,000. But now, low gas fees have increased the inflation rate of the network, and the net emission of ETH has exceeded 2,000.
💡 To combat this trend, Martin Köppelmann, the founder of Gnosis, proposed a bold plan to increase the gas limit to increase Layer 1 activity. Although it sounds a bit counterintuitive, he believes that this may be an effective measure to solve the problem.
🤔 And, do you know? Ethereum’s gas fees even dropped below 1 Gwei over the weekend! This is the first time since the London hard fork in August 2021, which implemented a mechanism to destroy base fees in order to reduce the supply of ETH.
🔄 The current decline in gas fees is mainly due to users turning to layer 2 scaling solutions, coupled with the Dencun upgrade in March, which has greatly reduced the cost of the layer 2 network.
💬 So, what do you think of the decline in ETH destruction? Do you think Martin’s proposed strategy of increasing the gas limit is feasible? What do you think of this proposal? Leave your thoughts in the comments!
