The total transaction fee on which Ethereum has decreased by almost 50 % over the past seven days with the activity slowed down on the chain dramatically, according to the paint from the Blockchain analytics platform INTOTHEBLOCK.
ETHEREUM, the second largest encrypted currency by market value, is famous for volatile gas fees, which usually rise and decrease based on the crowded network. However, the current decrease in transactions fees reflects a significant slowdown in the activity on the chain rather than just a temporary decline. This has sparked widespread concerns about reducing the demand for the network.
Over the years, Ethereum Mainnet has faced great challenges to expansion, which led to the adoption of a road map centered around Rollup that separates most of the chain activity to layer 2 solutions. This shift also led to the deportation of users, protocols and activities on alternative networks such as Solana, Avalanche and Binance Smart Chain.
The sharp decrease in transactions fees comes amidst the slowdown in the market, which raises concerns about the long -term expansion of ETHEREUM, and the potential impact of the decline in the network’s activity on the price of ETH. ETH is currently trading in $ 1970 with one -year performance by -40 %, making it one of the worst major encrypted currencies.
Eth Spot Etfs recorded $ 280 million in external flows over nine days
The exchange funds on the Stock Exchange (ETH) has witnessed an external flow of 142,564 ETH-hostility to approximately 280 million dollars-in the past nine days, according to the Crypto Analytics platform Coinglass. This development has sparked more fears between investors and market participants, prompting speculation about the basic factors that lead this capital journey.
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ETH Spot ETFS was received in 2024 initially optimistic, largely driven by Bitcoin Spot earlier in the year. Many expected a similar flow of institutional capital in the ETHEREUM market.
However, recent external flows can indicate a shift in investor morale or the different market dynamics in playing. Although organizational clarity increased in the United States and the inclusion of ETH in the country’s digital asset stock, these factors were not enough to stop the continuous ETF flows.
In addition, the external total economic factors-such as recession fears, tariff cracks, and geopolitical risks-will contribute to the sale. Founding investors, who suffer from retail traders in general, may decline from retail traders due to these wider fears.
