Ethereum (ETH) cannot be considered a deflationary cryptocurrency because its fees are too low to maintain a sufficient burn rate, according to a veteran trader and analyst

Ethereum (ETH) fees are lowest since August 2020, data shows August 2024 is worst month for Ethereum (ETH) since DeFi Summer 2020

Ethereum (ETH) transaction fees have reached their lowest level since August 2020, raising concerns about the second-largest cryptocurrency's ability to maintain its deflationary status. However, a veteran trader and analyst believes that the disappearance of the “ultra-sound money” narrative is not a tragedy for ETH.

Ethereum ( ETH) transaction fees have reached their lowest level since August 2020, raising concerns about the second-largest cryptocurrency's ability to maintain its deflationary status. However, one veteran trader and analyst believes that the disappearance of the “ultra-sound money” narrative is not a tragedy for ETH.

Here is a summary of the key points of the analysis:

* Ethereum (ETH) transaction fees saw a significant decline, reaching their lowest level since August 2020.

* Ethereum (ETH) transaction fees have seen a significant decline, reaching their lowest level since August 2020.

* This decrease in fees is mainly due to the migration of network activity to L2s and the introduction of blobs by the ERC 4337 implementation.

* This decrease in fees is mainly due to the migration of network activity to L2s and the introduction of blobs by the ERC 4337 implementation.

* As a result, the ETH inflation rate has fallen to 0.7% per year, raising concerns among the community due to the long-term stagnation of the ETH price.

* As a result, the ETH inflation rate has fallen to 0.7% per year, raising concerns among the community due to the long-term stagnation of the ETH price.

* However, the analyst points out that these changes also have benefits, as they were necessary for Ethereum L1.

*However, the analyst points out that these changes also have benefits, as they were necessary for Ethereum's L1.

* Despite the decrease in fees, ETH continues to have a lower inflation rate than other major cryptocurrencies, such as ADA, SOL, AVAX, and DOT.

* Despite the decrease in fees, ETH continues to have a lower inflation rate than other major cryptocurrencies, such as ADA, SOL, AVAX, and DOT.

*Analysis suggests that Ethereum needs another way to be valued, given its current tokenomics.

*Analysis suggests that Ethereum needs another way to be valued, given its current tokenomics.

*The Ethereum (ETH) community offers four bullish monetary narratives for ETH in the current environment.

*The Ethereum (ETH) community offers four bullish monetary narratives for ETH in the current environment.

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