Ethereum Fee Burn Revenue Plummets 44% in August, Despite Price Surge

Ethereum’s burn revenue dropped significantly to $14.1 million in August, a 44% decline from the previous month’s $25.6 million. This unexpected drop came despite Ethereum prices approaching all-time highs of $4,276. The dip coincides with a slowdown in network activity and potentially lower congestion on the network. While Ethereum’s burn mechanism helps reduce supply, reduced fees suggest less on-chain activity during August. Analysts attribute this to potential factors like decreased DeFi and NFT activity, as well as increased utilization of Layer 2 networks like Arbitrum and Optimism.