Ethereum has hit rock bottom again. The coin has the lowest level of daily transactions in years.
In 2024, the daily transaction stats were $30 million, a staggering high. Now, it has come down to less than $500,000.
The daily transaction volume, however, remains fixed at 1.2 million. But investors are asking why the average weekly fee revenue has dropped.
Certainly, there are a lot of reasons. However, two factors have been crucial here. The eip-4844 and Layer 2 ETH solutions are precise.
Due to these two factors, the cost has been substantially reduced. In sync, the revenues have depleted too. But it has also opened up the investment option for a wider range of users.
The Market Opinion
Numerous validators earn their revenue from the fees. However, there is no hope of the market turning bullish anytime soon. Since the retail price hasn’t been reduced, it would be hard to obtain new customers.
Transaction Fees Depleting
The daily average fee revenue of Ethereum has dropped below $500k since late March 2025. Just one year ago, the price was $30 million. However, the daily transaction volume remains almost the same.
The blob transactions are to blame here. These transactions reduce the L2 roll-up costs related to data availability. The other pivotal player here is the Layer 2 Ethereum solutions like Base. It reduces the fees to secure Ethereum.
However, it also implies a reduction in fee revenue. Therefore, ETH investments become a big risk in the long term.
It is one of the main reasons why Ethereum transactions have not performed up to the mark compared to Bitcoin in 2025.
In the first quarter of 2025, ETH is dropping a whopping 49%. The divergence means that Ethereum’s utility won’t be driving the token value anymore.
