IntoTheBlock: Ethereum network fees hit 9-month low this week, ETH falls into inflation partly due to L2 adoption

Odaily Planet Daily News IntoTheBlock data shows that Ethereum network fees fell 9% month-on-month this week to approximately US$21 million, the lowest level in nine months. According to data from Ultrasound.money, the supply of ETH has been increasing because the number of tokens destroyed to verify transactions is less than the number of additional tokens issued. IntoTheBlock wrote in the report: "This trend may put some pressure on the Ethereum token price, as its supply has been growing over the past month, which has reversed the deflationary trend." During the busy period, the network burned There are more tokens than are issued, thus limiting the supply, which is generally considered good for price. However, when network demand is low, the situation is reversed. Lucas Outumuro, director of research at IntoTheBlock, said the decline in network fees is partly driven by the adoption of Layer 2 networks, which is likely to continue in the short term. (CoinDesk)