Deniz 
With base fees today fluctuating between 1 and 2 gwei at the time of writing, the daily amount burned on the Ethereum network has dropped to its lowest level this year. This drop in base gas fees is among the lowest levels seen in recent years, so it has an impact on ETH issuing.
Given low gas prices, only 210 ETH were burned on Saturday—a record low for the year. On August 5, on the other hand, the daily burn shot to 5,000 ETH as gas prices hit roughly 100 gwei. The network’s inflation rate has increased given such cheap gas costs. Data from The Block indicates that the net ETH emission was recorded at over 2,000 ETH, even while 210 ETH were incinerated.
With this inflationary trend, Gnosis founder Martin Köppelmann has advised momentarily raising the gas limit. “The base fee is at a multi-year low of ~0.8 GWEI. 23.9 would be required to offset staking rewards. In my opinion, Ethereum needs to increase L1 activity again and even if it sounds counterintuitive at such low rates, raising the gas limit can be part of a strategy,” he stated.
Initiated in August 2021, the London steel fork—also known as EIP-1559—introduced a burnt basic charge and a priority fee meant for use as a tip for validators. Higher fees burn more ETH, thereby lowering the supply since the base fee closely connects with network activity.
Increased user migration to Layer 2 scaling solutions and the acceptance of blob transactions brought in by the Dencun update in March have helped lower Layer 2 network costs by means of this drop in gas fees. With a market capitalization of $305 billion, ETH is trading at $2,540, up almost 10% year-to-date.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.