Ethereum seems to be positively outlooking.

In 2023, the total number of Ethereum (ETH) coins burned will be as high as 66,000 ETH, worth approximately 117 million dollars, based on the current ETH price of $1,780. This significant reduction in the circulating supply of Ethereum is expected to alleviate the pressure on Ethereum and make it scarcer and harder to find, which could potentially boost its value.

Due to the current Ethereum burning mechanism, approximately 614,000 ETH coins will be burned out of circulation every year. If we consider the current price of Ethereum, this amounts to approximately $1.09 billion worth of Ethereum that will be burned. The Ethereum network received a significant update in August 2021, known as the London Hard Fork, which introduced the EIP-1559 token standard. This led to the implementation of the fee-burning mechanism for transactions. Since then, Ethereum has been continuously burning coins, reducing the total supply of Ethereum, and creating a deflationary effect.

The continuous burning of coins has a direct impact on the Ethereum ecosystem because it reduces the total circulating supply of coins. This, combined with increased demand from investors, could potentially drive up the price of Ethereum.

Santiment, an online blockchain analysis company, has shown that the transaction fees for Ethereum have decreased to less than $2 per transaction. The average fee, which is measured by the total fees in all cryptocurrencies, varies based on data transmission and the number of transactions occurring at that time. Those who want their transactions to be processed more quickly must exchange them for higher fees, in order to ensure their transactions are prioritized on the network. On the other hand, when there are not many users on the network, the fees will decrease due to a lack of investors competing for faster transactions. During the period when the graph peaked, Ethereum's fees rose to $8.12 before eventually declining as the number of users increased.

However, this is not always the case as high fees may result from the effects of investors pumping up the prices of cryptocurrencies. Currently, Ethereum's price has risen above $1,800 in the past week, which is a level the currency has not reached since August 2022. The recent price increase may result in a slight increase in ETH fees. Nonetheless, the fees have decreased to only $1.75. Santiment believes that this could be a good sign for ETH as it indicates that the demand for transactions on the network is not as high as it was previously. Moreover, some analysts believe that this could be a gateway to a $2,000 price level.