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Ethereum’s transaction fees recorded a significant drop, reaching a 4-year low, indicative of a decrease in onchain demand, according to The Block’s Data & Insights.
The 7-day moving average (7DMA) of transaction fees on the Ethereum network plummeted to $0.77 on February 15, a sharp 70% fall from the $2.57 level seen just a week earlier. This decline in fees is the lowest in dollar terms since July 2020.
In tandem with the drop in fees, Ethereum’s median gas price, measured in Gwei, also saw a reduction. Over the past week, the daily median gas price averaged 1.61 GWEI, dipping to its lowest at 1.19 GWEI on Saturday, marking the lowest point since January 2020, according to The Block’s tracking data. The only other instance when gas prices were this low since January 2020 was in September 2024.
Despite the common expectation that lower fees would boost user activity, the current situation suggests a different scenario. The persistent decline in fees points to a broader lack of demand rather than an improvement in network efficiency.
The 7DMA of Ethereum’s onchain volume corroborates this trend, having fallen to just $4.19 billion on Saturday, which is a 46% decrease from the previous week’s figures. This volume is the lowest Ethereum has seen since November 7, following the U.S. presidential election.
This ongoing drop in Ethereum’s onchain activity and fees has been a topic of concern in recent weeks. As the blockchain continues to show signs of decreased activity, the latest numbers further highlight the challenges faced by the network.
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