Ethereum transaction fees have dropped significantly, hitting a four-year low, indicating a decline in demand for direct transactions, according to data and analysis from The Block.
The seven-day moving average (7DMA) for Ethereum’s transaction fees fell to $0.7700 on February 15, a sharp 70% drop from the $2.5700 level seen just a week ago. This drop in fees is the lowest in dollar terms since July 2020.
In conjunction with the fee drop, the average gas price on Ethereum, measured in Gwei, has also been falling. Over the past week, the daily average gas price was 1.61 GWEI, falling to a low of 1.19 GWEI on Saturday, the lowest since January 2020, according to tracking data from The Block. The only other time gas prices have fallen this low since January 2020 was in September 2024.
Despite common expectations that lower fees will boost user activity, the current situation suggests a different scenario. The continued decline in fees indicates a broader lack of demand rather than an improvement in network efficiency.
The 7-day moving average of live trading volume on Ethereum confirms this trend, falling to just $4.19 billion on Saturday, a 46% drop from the previous week’s figures. This is the lowest volume Ethereum has seen since November 7, after the US presidential election.
This continued decline in Ethereum live activity and fees has been a concern in recent weeks. As signs of declining activity on the blockchain continue to emerge, the latest numbers shed further light on the challenges the network faces.
