In just one day, the value of Ethereum increased by 1.11% and traded around $3,309. This happened as transaction fees on the Ethereum network significantly decreased, averaging just 4 Gwei. As a result, fewer Ethereum tokens were burned, leading to an increase in supply. In the past 24 hours, only 200 Ethereum tokens were burned, resulting in a 0.67% supply growth.

The decrease in transaction fees can be attributed to the widespread adoption of Layer-2 scaling mechanisms and the use of blob transactions after the implementation of the Dencun hard fork in March. These improvements have significantly reduced the transaction burden on Layer-2 networks, affecting the entire Ethereum ecosystem.

Cheaper transactions on the Ethereum network can have both short-term and long-term effects. In the short term, the lower price encourages more people to use the network, potentially increasing the price of ETH. However, in the long term, it may lead to a larger supply of ETH as fewer tokens are burned, which could result in a possible future price drop. Nevertheless, the growing adoption of Layer-2 solutions can offset this effect by stimulating demand for ETH.