Ethereum transaction fees have plunged 70% in just one week, signaling weakened demand and reduced on-chain activity.
Ethereum Fees Hit Four-Year Lows
The 7-day moving average (7DMA) of Ethereum transaction fees fell to $0.77 on February 15, a sharp decline from $2.57 the previous week. This represents the lowest transaction cost for Ethereum since July 2020, highlighting a drastic drop in network demand.
At the same time, Bitcoin activity has also slowed, with network transactions hitting a 12-month low as activity fell 55% from peak levels.
Gas Prices Confirm Reduced Network Demand
Gas prices on Ethereum provide additional evidence of the declining demand. Over the past week, the median gas price averaged 1.61 Gwei, with a low of 1.19 Gwei on February 15—the lowest level since January 2020 when The Block began tracking this data.
The only other time gas prices dropped this low was in September 2024, further reinforcing the pattern of declining on-chain activity.
Declining Volume Suggests Broader Weakness
Typically, lower transaction fees encourage greater network activity. However, the severity of the decline suggests weak user demand rather than improvements in efficiency.
Ethereum’s 7DMA on-chain volume dropped to just $4.19 billion, a 46% decrease from the previous week, marking the lowest transaction volume since November 7, 2024, right after the U.S. presidential election.
While Ethereum has faced struggles in recent months, this dramatic decline in transaction activity suggests a prolonged cooldown in DeFi, NFT markets, and general blockchain usage
