Ethereum experienced a challenging quarter, witnessing its burn rate decline significantly, reaching the lowest level since August 2021. This has raised concerns among investors as it coincides with Ethereum’s market performance. Approximately 53 ETH were burned daily last week, while the overall supply has grown by 3% since the implementation of the EIP-1559 upgrade. In the first quarter, ETH's price fell by 45%, leading to a loss of $170 billion in market value, marking one of the worst quarters since 2016. The EIP-1559 upgrade initially helped reduce circulating supply by burning transaction fees, but recent changes have seen user activity shift towards layer-2 networks, resulting in lower transaction fees on Ethereum. Meanwhile, tokenization trends could alter the landscape if large asset managers bring significant investments onto Ethereum, with projections of the tokenized market growing to $16 trillion by 2030.

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