Ethereum’s transaction fees have skyrocketed to unprecedented levels, with a significant increase in destruction rates as well. However, despite this surge, the number of active accounts on the network has seen a sharp decline.
According to data from The Block, Ethereum’s 7-day moving average transaction fees have soared to $3.52 as of September 23, a whopping 314% increase from the beginning of the month. This surge in fees is attributed to the growing demand for Ethereum transactions, which has led to an increase in congestion on the network.
As a result, the destruction rate of Ethereum has also seen a substantial increase, with 1,360 ETH being burned on September 21, representing a 1,600% increase from the beginning of the month. This is a significant development, as it indicates that more users are choosing to use the Ethereum network, despite the higher fees.
However, amidst this surge in transaction fees and burns, the number of active Ethereum accounts has seen a surprising decline. According to data, the number of active accounts on the network has fallen by 11% since the beginning of the month, reaching a low of approximately 385,000 accounts. This is the lowest value seen since December 1, 2023.
The decline in active accounts may be attributed to the increasing competition from other blockchain networks and platforms, which are offering more affordable and efficient transaction options. Additionally, the high transaction fees on Ethereum may be deterring some users from using the network.
Despite these challenges, Ethereum’s transaction fees and destruction rate continue to set new highs. As the network continues to evolve and adapt to changing market conditions, it remains to be seen how these trends will shape the future of Ethereum and its ecosystem.
