IntoTheBlock Research Director: The adoption of Layer 2 networks has contributed to a decrease in ETH network fees to some extent

ChainCatcher news, according to data from IntoTheBlock, Ethereum network fees have decreased by 9% week-on-week, amounting to approximately $21 million, the lowest level in 9 months.

Additionally, data from Ultrasound.money shows that the supply of Ethereum's native token ETH has been increasing, as the number of tokens destroyed (burned) for transaction validation is less than the number of newly issued tokens.

IntoTheBlock stated in a report: "'This trend' may put some pressure on the price of Ethereum tokens, as their supply has been increasing over the past month, reversing the deflationary trend." During busy periods, the number of tokens burned by the network exceeds the number of newly issued tokens, thereby limiting supply, which is generally considered favorable for price. However, when network demand is low, the situation can reverse.

Lucas Outumuro, research director at IntoTheBlock, stated that the decline in network fees is partly driven by the adoption of Layer 2 networks, a situation that may continue in the short term.