2025-02-20
Ethereum transaction fees have dropped dramatically,
falling to their lowest point in over four years.
Ethereum fees have fallen by 70% in
just one week. The average transaction fee was $2.57 a week ago but dropped to
$0.77 on February 15.
This is the cheapest it has been to use
Ethereum since July 2020.
Fewer people are using the Ethereum
network right now. Lower activity leads to less demand for transactions, which
leads to lower fees.
Bitcoin is also experiencing a
slowdown. Transactions on the Bitcoin network recently fell 55% from their
peak.
Ethereum gas prices confirm the trend. The
average gas price (a measure of transaction costs) dropped to 1.19 GWEI on
February 15, the lowest since tracking began in 2020.
This level has only been reached once
before, in September 2024.
Normally, lower fees would attract more
users. However, this drop seems to indicate weak demand rather than improved
efficiency.
Ethereum’s total transaction volume
also fell by 46% in one week. On February 15, it hit just $4.19 billion—the
lowest since November 7, right after the U.S. election.
Solana, BNB Chain, and Tron now generate
more transaction fees than Ethereum.
Ethereum is facing a slowdown in
activity, and the continuous drop in fees and transaction volume suggests that
demand is weakening rather than improving.
