Ethereum Transaction Fees Hit 4-Year Low Amid Declining Onchain Demand

Ethereum’s transaction fees have dropped to a four-year low, signaling reduced onchain activity. According to The Block’s Data & Insights, the 7-day moving average (7DMA) of Ethereum transaction fees fell to $0.77 on February 15, a sharp 70% decline from $2.57 just a week earlier. This marks the lowest level since July 2020.

Gas fees have also plummeted. The median daily gas price averaged 1.61 Gwei over the past week, reaching a low of 1.19 Gwei on Saturday—the lowest since January 2020. The only other time gas prices were this low was in September 2024.

Despite the assumption that lower fees encourage more activity, Ethereum’s current situation suggests otherwise. The sustained decline in fees appears to reflect a lack of demand rather than improved network efficiency. Ethereum’s onchain volume follows the same trend, with the 7DMA falling to $4.19 billion on Saturday—a 46% drop from the previous week. This represents the lowest volume recorded since November 7, following the U.S. presidential election.

This ongoing drop in transaction fees and network activity raises concerns about Ethereum’s current state. As user engagement and transaction volume continue to decline, it remains to be seen how this trend will impact Ethereum’s broader ecosystem.