Ethereum

Token

2024

Daily transaction fees on the Ethereum network have fallen to their lowest level since September 2024, according to data from Token Terminal.
Ethereum <a href="https://tokenterminal.com/explorer/studio/charts/new?v=NDJmMmQwNjQ2NDFjYTFjYWUzNWYzZGZh" rel="noopener noreferrer nofollow" target="_blank">generated</a> $731,472 in daily fees on Feb. 8, marking the first time in five months that daily revenue dropped below $1 million. The network experienced a similar slump from Aug. 17 to Sept. 8, 2024, when it failed to surpass the $1 million threshold in multiple days. The last time this occurred was in November 2020.
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 <img alt="Cryptocurrencies, Foundation, Ether Price, Layer2, Transaction Fee" src="https://s3.cointelegraph.com/uploads/2025-02/0194ef51-a471-7b12-af00-c03e7c253409" title="">
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 Ethereum fees generated on Feb. 8. Source: Token Terminal
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The network’s native cryptocurrency, Ether (<a href="https://cointelegraph.com/tags/ethereum-price" rel="noopener noreferrer nofollow" target="null">ETH</a>), has also disappointed investors over the past year, failing to reach new highs alongside Bitcoin despite the approval of <a href="https://cointelegraph.com/news/cboe-official-launch-date-spot-ethereum-etf" rel="noopener noreferrer nofollow" target="null">spot exchange-traded funds (ETFs)</a> in major markets like the US and <a href="https://cointelegraph.com/news/hong-kong-bitcoin-ether-etfs-start-trading-april-30" rel="noopener noreferrer nofollow" target="null">Hong Kong</a>.
The global cryptocurrency industry has faced broader downturns amid escalating trade tensions, but one key factor weighing on Ether’s performance is its rising supply. Since April 2024, Ethereum’s supply has been steadily increasing, reversing the deflationary period introduced by <a href="https://cointelegraph.com/news/breaking-historic-day-for-crypto-as-ethereum-merge-to-proof-of-stake-occurs" rel="noopener noreferrer nofollow" target="_self">the Merge in September 2022</a>. Ethereum’s total supply has now surpassed pre-Merge levels.
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 <img alt="Cryptocurrencies, Foundation, Ether Price, Layer2, Transaction Fee" src="https://s3.cointelegraph.com/uploads/2025-02/0194ef52-ce4c-771b-8261-135e6d5242f9" title="">
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 Ethereum supply reclaims pre-Merge levels. Source: Ultrassound.money
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The Merge eliminated Ethereum’s mining-based issuance, which previously had a high supply inflation rate. <a href="https://cointelegraph.com/news/bullish-on-ethereum-s-london-hard-fork-here-s-an-options-strategy-pro-traders-use" rel="noopener noreferrer nofollow" target="null">Ethereum also implemented the London hard fork</a> in August 2021, which introduced a mechanism that burns a portion of transaction fees. When network activity is high, burned ETH can surpass newly issued ETH, making the asset deflationary.
Related: <a href="https://cointelegraph.com/news/worst-thing-ethereum-eth-price-down-70-btc-the-merge" rel="noopener noreferrer nofollow" target="null">‘The worst thing that happened to Ethereum’ — Bitcoin up 160% since the Merge</a>&nbsp;
<h2 id="layer-2-networks-reduce-ethereum-activity">Layer-2 networks reduce Ethereum activity</h2>
Ethereum’s layer-2 scaling strategy has successfully reduced congestion and fee spikes on the mainchain, but this has shifted activity off the main blockchain. These layer-2 networks still face interoperability issues, which has raised concerns <a href="https://cointelegraph.com/magazine/based-rollups-make-ethereum-feel-ethereum-again/" rel="noopener noreferrer nofollow" target="_self">about a fragmented Ethereum ecosystem</a>.
Meanwhile, competitors have been gaining ground. Tron is growing as <a href="https://cointelegraph.com/news/stablecoin-and-memecoin-frenzy-drive-trons-adoption-report" rel="noopener noreferrer nofollow" target="null">a preferred network for stablecoin transactions</a>. Solana has emerged as a rising DeFi hub, especially <a href="https://cointelegraph.com/news/solana-stablecoin-market-doubles-trump-memecoins-usdc-dominance" rel="noopener noreferrer nofollow" target="null">within the memecoin market</a>. Both networks have edged Ethereum in total fees generated over the past three months, Token Terminal data shows.
Beyond onchain factors, internal conflicts within the Ethereum Foundation have also cast uncertainty over the network.
Related: <a href="https://cointelegraph.com/news/ethereum-foundation-infighting-and-drop-in-dapp-volumes-put-cloud-over-eth-price" rel="noopener noreferrer nofollow" target="null">Ethereum Foundation infighting and drop in DApp volumes put cloud over ETH price</a>
In January, Ethereum co-founder Vitalik Buterin took <a href="https://cointelegraph.com/news/vitalik-buterin-ethereum-leadership-debate" rel="noopener noreferrer nofollow" target="null">sole authority of the Ethereum Foundation’s leadership</a> amid criticism of executive director Aya Miyaguchi and <a href="https://cointelegraph.com/news/i-dropped-eigen-layer-advisorship-ethereum-foundation-justin-drake" rel="noopener noreferrer nofollow" target="null">conflict-of-interest concerns</a> over researchers’ paid advisory roles at EigenLayer.
But Ethereum bulls seem unfazed by the noise. Accumulation addresses scooped up 330,705 ETH ($833 million) on Feb. 7, the largest single-day inflow ever recorded, according to CryptoQuant.
Magazine: <a href="https://cointelegraph.com/magazine/ethereum-l2s-interoperability-roadmap-complete-guide/" rel="noopener noreferrer nofollow" target="null">Ethereum L2s will be interoperable ‘within months’: Complete guide</a>

Ethereum fees dip below $1M for the first since September 2024

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