- Ethereum fees dropped to a five-year low of $0.168, as of April 2025.
- The ETH market price is trading in the $1,590 price range with no significant gains for the past few months.
The Ethereum blockchain has been gradually losing its spark for the past few months with reduced on-chain activity. It was once the top blockchain network for all decentralized activities, such as dApps, DeFi, NFTs, etc. But it continues to lose ground to other sophisticated blockchain networks with more use cases.
Blockchain analytics platform Santiment recently published a report on the significant reduction of Ethereum fees. It highlighted that the average cost of a transaction has dropped to a 5-year low of $0.168. The last time it recorded a transaction fee below $0.17 was in May 2020.
This demonstrates a substantial reduction in the usage of the Ethereum blockchain. Users who spend ETH and make various kinds of transfers on the Ethereum blockchain are decreasing. When network traffic increases, users bid high transaction fees for their transaction execution. Since there is no network congestion, users do not need to pay high fees, which is the reason why the fees are lower at present.
Ethereum (ETH) Price Trades Above $1,500 Price Level
Ether is trading at $1,598.72 with no significant gains or losses at the time of reporting. It is recording weekly and monthly price changes of -0.24% and -15.54%, respectively. Along with the Ether market price, its market capitalization value has also dropped significantly to $192.93 billion from its all-time high value of $559 billion.
The decreased usage of the Ethereum blockchain and the ETH market price have one thing in common which is reduced usage. The Santiment report also highlighted that the decreased fee level under $1 is a sign that the community has become disinterested in the blockchain.
Ethereum has been facing issues not only in terms of market prices and fees but also in terms of developer activity. When the crypto market was on a short bull run by the end of 2024, several altcoins recorded ATH values except Ether. It has disappointed its community and is still continuing its dull performance, fueled by the global macroeconomic uncertainty.
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