Ethereum's weekly transaction fees have decreased by 21.7% to $6.46 million, according to Sentora, an on-chain analytics firm. This decline is attributed to reduced base-layer activity, with average gas fees reaching multi-year lows as users migrate to Layer-2 rollups for cheaper transactions. While this shift benefits users and developers, it also results in lower EIP-1559 burns, potentially affecting Ethereum's disinflationary supply dynamics.
Despite the fee reduction, Ethereum's total fees remain approximately three times higher than Bitcoin's, underscoring its dominance in on-chain economic activity. Analysts indicate that factors such as ETF demand, staking inflows, and Layer-2 adoption will play a more significant role in influencing Ethereum's price than base-layer fees alone.
Ethereum Weekly Fees Drop 21.7% to $6.46M Amid Lower Base-Layer Activity
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