Ethereum Fees Plummet 90% From Peak Levels, Slowing Network's Deflation

Ethereum's network fee revenue dropped 90% from its high in May, per IntoTheBlock data.

Low fees are positive for Ethereum users but negatively impact ETH's deflationary supply.

NFT trading drove most token burning in 2021-2022 but recently fell to just 8% of fees.

Lower activity is keeping ETH supply inflationary, growing by $52M worth in the past month.

The low fee regime trades off high network revenues for attracting mainstream users via layer 2 solutions.