Active Accounts on the Ethereum Network Has Dropped Drastically This Month
2024-09-23
Bittime - The Ethereum network is experiencing a decrease in activity. The number of active accounts on the network reached its lowest point since December 1, 2023.
This decline occurred amid a surge in transaction fees which increased by more than 300% in less than one month. Read this article to find out more!
Ethereum Transaction Fees Surge
Source: theblock.co
In early September 2024, the average transaction fee on the Ethereum network reached its lowest level, namely below $1 USD, the lowest figure since July 2020. However, in the following weeks, transaction fees increased drastically.
On September 21, the 7-day average transaction fee reached $3.52 USD, up from just $0.85 USD. This 314% increase is very striking, considering that costs had stabilized in the low range for several months previously.
Ethereum transaction fees spike as well influence the entire ecosystem, especially in terms of ETH burning. On September 21, the daily ETH burn rate reached 1,360 ETH, a 1,600% jump from just 80.27 ETH at the start of the month.
Read Also: Ethereum Under Threat, Layer 2 Will Take Over Ethereum's Earnings?
Ethereum Gas Usage
There are several smart contracts that consistently consume the most gas or fees on the Ethereum network. Over the past 30 days, Uniswap and its V2 version have consumed the most gas.
Apart from Uniswap, Telegram-based crypto trading bots such as Maestro and Banana Gun are also among the most gas-guzzling ones.
Not only that, transactions involving stablecoins such as Tether (USDT) and USD Coin (USDC) are also noted as large contributors to gas consumption on the Ethereum network.
With various DeFi applications and stablecoins continuing to use Ethereum as their primary platform, it is not surprising that the gas used by these networks continues to increase.
The Number of Active Accounts on Ethereum Drops
Source: theblock.co
Namun, mAlthough transaction fees have soared and ETH burning has increased, this has not been accompanied by an increase in the number of active accounts on the network. In fact, the number of active accounts has actually fallen sharply.
On September 21, 2024, the number of active accounts on the Ethereum network fell to approximately 385,000, down 11% from the beginning of the month. This decrease marks the lowest number of active accounts recorded since December 1, 2023.
This shows that although Ethereum remains one of the largest networks in the crypto world, there is a decline in interest and participation from users.
Read Also: Ethereum Price Analysis Today: Is It Low Yet or Still Going Down?
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