Despite a lull in on-chain activity, Ethereum’s gas fees have remained remarkably low, hovering below 2 Gwei since April.

Meanwhile, the total ETH supply has grown by a modest 228,000, translating to an annual inflation rate of 0.5%. But beneath the surface, Ethereum’s fundamentals are flourishing.

Due to the decrease in on-chain activity, ETH Gas has been below 2 Gwei for a long time since early April this year. In the past four and a half months, the total amount of ETH has increased from 120,063,605 to 120,291,622, and the inflation has increased by 228,000. Based on…

— Wu Blockchain (@WuBlockchain) August 22, 2024

The network has made significant strides in scalability, with Layer 2 solutions like Optimism and Arbitrum leading the charge. Transaction fees have plummeted to under $0.01, and cross-L2 wallet usability has improved dramatically. Zero-knowledge proof tooling has become more powerful and accessible, while second-generation privacy tools are emerging.

Ethereum has gotten stronger:

* Under $0.01 txfees on L2
* Two EVM L2s (@Optimism @arbitrum) now at stage 1
* Cross-L2 wallet UX has improved a lot (eg. no more manually switching networks), though still a long way to go
* Much more powerful and mature ZK tooling making life… pic.twitter.com/4jQGeZ3qEA

— vitalik.eth (@VitalikButerin) August 22, 2024

Ethereum’s identity, reputation, and credentials ecosystem is gaining traction, and progress on STARKs has clarified the network’s long-term security and decentralization roadmap. Account abstraction and block construction have also seen significant advancements.

On August 21, the total net outflow of Ethereum spot ETFs was $17.9688 million. Grayscale ETF ETHE had an outflow of $31.1431 million, Fidelity ETF FETH had an inflow of $7.9286 million, and Grayscale mini ETF ETH had an inflow of $4.2422 million. https://t.co/Tvs2oCSxTg

— Wu Blockchain (@WuBlockchain) August 22, 2024

Perhaps most telling, however, is the influx of capital into Ethereum ETFs, with over $2 billion invested in just four weeks. While there was a net outflow of $17.9688 million on August 21, Fidelity’s ETF saw an inflow of $7.9286 million, and Grayscale’s mini ETF added $4.2422 million. As the dust settles, it’s clear that Ethereum’s fundamentals are stronger than ever.

Over $2bn has flowed into Ethereum ETFs since their launch nearly 4 weeks ago pic.twitter.com/qjXyO5KPCY

— CryptoSavingExpert ® (@CryptoSavingExp) August 22, 2024

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or using any services.

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