ETHEREUM (ETH), the second largest encrypted currency in the world depending on the market value, passes an approximate correction. Nearly a decade of being a major force in the world of encryption, ETH witnessed a sharp decrease in 2025 – as the price decreased by 46 % in the first quarter.
Ethereum transactions have decreased to its lowest point since 2020, indicating a significant change in how people use the network. According to Blockchain Analysis INTOTHEBLOCKThe total fees collected on ETHEREUM decreased by approximately 60 % in the first quarter of 2025, reaching only $ 208 million by early April.
The consequences a Slow burning rate
Another concern is to slow down the ETHEREUM burning rate. This rate is important because it helps reduce the ETH number in trading. But with a fewer transactions, the amount of ETH that is burned decreased. In fact, major platform fees such as UISWAP, Metamask and Tether have decreased by more than 95 % since late 2024.
As a result, the inflation rate in Ethereum began to rise. Defi Michael Nadeau has warned that Ethereum enlargement can be close to Bitcoin, which may worry their owners in the long run.
Layer 2 networks take responsibility
One of the main reasons for low graphics is the increasing use of layer 2 networks (L2). This is based on the top of Ethereum and provides faster and cheapest transactions. One of the best pilgrims is Coinbase’s a base The network, which is now processing more than 80 transactions per second – more than any other L2 solution.
Ethereum Denkon The upgrade, which was launched in March 2024, made L2 transactions cheaper. Encouraged this user to move from the main Ethereum network to these fastest alternatives, which led to fewer transactions and fewer fees on the main network.
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ETH/BTC performance decreased to the lowest level in 5 years
ETHEREUM also lags behind Bitcoin in terms of prices. Since the beginning of 2025, ETH has decreased from more than $ 3,300 to $ 1,805 from April 4. Meanwhile, Bitcoin has reached the highest level at 109,000 dollars and has decreased only about 10 %. In contrast, ETHEREUM has 45 % of its value, which prompted the ETH/BTC ratio to its lowest point in five years.
Adult investors are still buying a decrease
Even with all the last setbacks, some of the big investors remain confident in the future ethereum in the long run. InTothheblock reports that Ethereum “whales” has bought more than 130,000 ETH after the price drops to less than $ 1,800. This indicates that many of them still believe in ethereum recovery.
Some analysts expect a strong recovery, saying that ETH can reach $ 5,000 by the end of 2025. Others are more optimistic, indicating that it may exceed $ 10,000 in the future.
Can Pectra upgrade things?
Looking forward to the future, next ethereum Petra The upgrade, expected in May, can help improve network performance. If it succeeds, ETH may give it the support it needs to restore momentum and attract more activity to the main network.
