Ethereum network sees 62% drop in fees: Is ETH price at risk?
Ethereum's base layer fees dropped 62% in 30 days, though Layer-2 growth and recent price rallies suggest ETH price isn't immediately at risk.Summary
Ethereum's base layer activity has cooled significantly, evidenced by a 62% drop in 30-day network fees, which is much steeper than competitors like Tron or Solana. This decline coincides with falling Total Value Locked (TVL) on the base layer, which fell from $100 billion to $76 billion in two months, and reduced decentralized exchange volumes and DApp revenues. This slowdown in base layer usage has traders concerned about ETH's short-term upside, despite a recent price rally near $3,400 driven by expectations of looser US monetary policy.
However, the growth in Ethereum's Layer-2 ecosystem, with Base transactions up 108% and Polygon up 81%, is offsetting the base layer weakness. Furthermore, the annualized funding rate for ETH perpetual futures remains balanced near 9%, indicating no strong bullish leverage. While base layer metrics are down, proponents argue that Ethereum's scalability focus via rollups offers a more sustainable model, and current data does not signal meaningful weakness in ETH price dynamics.
(Source：Cointelegraph)