Ethereum (ETH) which is addressed as ultra-sound money due to its deflationary supply method, now appears to be facing new challenges that have prompted some analysts to question whether this narrative still holds.
A prominent crypto analyst, Thor Hartvigsen, recently highlighted this issue in a detailed post on X, where he discussed the current state of Ethereum’s fee generation and supply dynamics.
Is ETH No longer Ultra-Sound money?
Hartvigsen pointed out that August 2024 is “on track to be the worst month in terms of fees generated on the Ethereum mainnet since early 2020.” This decline is largely attributed to the introduction of blobs in March, which allowed Layer 2 (L2) solutions to bypass paying significant fees to Ethereum and ETH holders.
As a result, much of the activity has shifted from the mainnet to these layer two (L2) solutions, with most…
