Kaiko Research Report: The growing supply of Ethereum may suppress potential price increases in the short term

According to BlockBeats, on August 19th, cryptocurrency analysis company Kaiko Research released a report stating that Ethereum's gas fees have recently dropped to a five-year low, mainly driven by increased Layer 2 activity and the Dencun upgrade in March, which lowered transaction fees for Layer 2. This reduction in fees has an impact on ETH, as lower fees mean less ETH is burned, thereby increasing the supply of tokens. Therefore, since April, the total supply of Ethereum has continued to rise. Despite the presence of demand driven factors such as spot ETH ETFs, this continuously growing supply may suppress potential price increases in the short term. Since the beginning of the second quarter, the overall demand for AI tokens has sharply declined. By early August, the weekly trading volume had plummeted to $2 billion, a significant decrease from the multi-year high of over $13 billion in the first quarter. The market share of stablecoin FDUSD reached a historical high of 39% at the end of July, reversing the trend of continuous decline over the past three months. BlackRock's online token fund BUIDL (representing BlackRock USD Institutional Digital Liquidity Fund) is one of many funds launched in the past 18 months, providing investment opportunities for traditional debt instruments such as US treasury bond bonds. It quickly became the largest on chain fund in terms of asset management scale (AUM). The fund was launched in collaboration with Securitize in March 2024 and has attracted over $520 million in inflows to date.