TL;DR
- Ethereum records a 62% decline in fees, signaling weaker demand on its base layer.
- Layer-two networks show strong and accelerating growth, supporting overall ecosystem activity even as mainnet usage cools.
- Despite falling TVL and a more cautious tone among traders, ETH price remains stable thanks to a resilient market structure and recent upgrades that improve network efficiency.
Ethereum experiences a significant reduction in average fees, a development that suggests activity on the mainnet has slowed in recent weeks. The shift raises questions about price direction, although broader metrics indicate the ecosystem still has solid underlying support.
Ethereum Fees Continue To Decline
Recent data shows that Ethereum fees dropped 62% over a thirty-day stretch, a steeper decline than the moves observed on Solana and Tron. The lower fees align with reduced blockspace demand and a cooldown after the elevated activity seen at the end of October. The trend also reflects efficiency improvements enabled by the Fusaka upgrade, which enhanced rollup processing and helped contain costs on the base layer.
Traders point out that ETH continues to hold support near $3,300, with short upward movements linked to recent macroeconomic signals from the United States. Derivatives metrics show the funding rate hovering around 9%, a level that implies a balanced allocation between long and short positions.
Layer Two Expansion Offsets Base Layer Weakness
The fee downturn unfolds as layer-two networks expand rapidly, reinforcing the broader shift toward faster and more economical execution environments. Base posts activity growth above 100%, while Polygon reports gains close to 80%, both reflecting persistent user demand for scalable infrastructure. Weekly volumes on Ethereum-based decentralized exchanges remain around $13,000 million, lower than a month ago but still consistent with the network’s leading position.
Total value locked on the base layer has fallen to $76,000 million, down from $100,000 million, yet Ethereum retains a market share above 60% within DeFi. Analysts note that this layered structure enables more efficient distribution of activity and helps maintain network resilience even during slower periods on the mainnet.
Market Signals Show Stability
Despite lighter usage on the base layer, market indicators do not point to strong downward pressure on ETH. Institutional interest remains steady, supported by positive remarks from regulators and the continued advance of tokenization initiatives across financial markets.
In conclusion, the 62% drop in Ethereum fees does not appear to threaten ETH in the short term. The expansion of layer-two solutions, combined with balanced derivatives metrics and improved cost efficiency, supports a constructive outlook for the network and reinforces ETH price stability moving forward.
