Ethereum's transaction fees have dropped to multi-year lows, with the seven-day moving average now generating less than $500,000 daily, compared to $30 million in March 2024. Despite this, daily transaction volume remains stable at around 1.2 million, indicating a shift in network economics rather than reduced usage.
Improvements like EIP-4844 (Proto-Danksharding) have lowered fees, especially for Layer 2 solutions such as Base, attracting users with reduced costs while maintaining Ethereum's security.
The fee reduction is a mixed blessing. Lower fees benefit users by improving accessibility, but validators face concerns about long-term economic stability as the network shifts reliance from transaction fees to ETH issuance for incentives.
Ethereum's price performance has lagged behind Bitcoin in 2025, despite hosting most stablecoin activity and emerging RWA protocols, suggesting that network usage and token value don't always align.
