Ethereum Network Fees Drop 62%: Is ETH Price at Risk?
Ethereum network fees have dropped 62% over the past 30 days, raising questions about potential risks to ETH’s price. Despite this decline, the network shows resilience through strong layer-2 growth and maintained price support levels.
Key data from Nansen indicates a significant cooling in Ethereum base-layer activity, with fees falling more sharply than on competing chains like Solana. However, layer-2 solutions such as Base and Polygon have seen substantial transaction volume growth—108% and 81%, respectively—suggesting that Ethereum’s expanding ecosystem remains dynamic.
Ethereum’s recent upgrade, Fusaka, may have contributed to lower fees by improving rollup efficiency. Meanwhile, ETH’s price rose over 11% amid softer U.S. employment data, though it remains 32% below its August peak.
On-chain metrics show reduced activity in decentralized applications (DApps). DEX trading volume on Ethereum fell to $13.4 billion from $23.6 billion four weeks earlier, and DApp revenue hit a five-month low. Total value locked (TVL) in Ethereum DApps also declined, dropping from $100 billion to $76 billion over two months. Still, Ethereum maintains a dominant 68% market share among smart contract platforms.
Perpetual futures funding rates held near 9%, reflecting balanced leverage market sentiment. Broader institutional and regulatory developments, including positive comments from former SEC commissioner Paul Atkins on blockchain adoption, may support longer-term confidence.
In summary, while Ethereum’s base-layer demand has softened, strong layer-2 growth and ongoing ecosystem development suggest underlying strength. Current data does not indicate fundamental weakness in ETH’s market structure.
cointelegraph_中文12/10 08:55