Ethereum transactions fees have decreased to its lowest point over a period of four years, which represents a major shift in the chain activity.
The decrease comes at a time when the network faces escalating challenges, including the low performance of the market and the weak basics.
Ethereum faces low fees and fears of inflation
According to InTothheblock, the total transaction fee from ETAREUM decreased by approximately 60 % in the first quarter of 2025, as it decreased to nearly $ 208 million from April 4. The company noted that this is its lowest level since 2020.
“The total ERT duties decreased to its lowest level since 2020 this quarter, driven primarily to increase the gas limit and transactions that are transferred to L2S” I mentioned.
Several factors have contributed to this decline. The largest driver is to adopt layer 2 networks, especially the Coinbase base. The Dencun promotion from Ethereum, which was launched in March 2024, has been much cheaper.
As a result, larger Mainnet users exceed Ethereum and transform into faster and costly alternatives. According to L2BEAT, Base is currently processing more than 80 transactions per second, leading to all other Layer-2 networks.
Despite the benefits of low fees, the basic measures of Ethereum show signs of stress.
Michael Nadu, founder of Divi report, A mark has been placed A sharp decrease in ETH burning rates. He pointed out that ETH was burned through major platforms such as UISWAP, Tether, Metamask and 1inch, which has collapsed with more than 95 % since November 2024.
Nadu explained that fading enthusiasm for retail and slower measurement expected of L2S contribute to lower contraction in ETHEREUM.
He added: “The annual ETH inflation is now 0.75 %. We must expect to continue to rise, and BTC inflation exceeds. We must also expect ETHEREUM the basics of corrosion during the next year.”
Meanwhile, the financial performance of the network reflects these concerns. The price of ETH has decreased by more than 45 % in the first quarter of 2025, which represents the worst quarterly performance since 2022.
Compared to Bitcoin, ETHEREUM has also been weak, as it lost 39 % of its value against BTC this year. This decrease pushed the ETH/BTC ratio to its lowest point in nearly five years.
However, long -term investors do not retreat. INTOTHEBLOCK Indicate ETHEREUM whales accumulated more than 130,000 ETH, as the price has decreased to less than 1800 dollars-its lowest level since November 2024-where it signs strong purchase feelings.
Moreover, industry experts believe that the upcoming Pectra upgrade, scheduled for May, can give the original a new start.
According to them, PECTRA can help restore confidence and push renewed growth through the ethereum ecological system by improving wallet functions and user experience.
Disintegration
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