Ethereum’s transaction fees have decreased nearly 60% in Q1 2025, totaling approximately 208 million USD. This marks the lowest fees since 2020, primarily due to the transition to Layer-2 solutions following the Dencun upgrade.
The burn rate of ETH has plunged over 95% since November 2024, raising worries about Ethereum’s economic sustainability. Its inflation rate is projected to surpass Bitcoin, impacting investor sentiment.
Despite these challenges, long-term investors are buying over 130,000 ETH as prices dip below 1,800 USD. The upcoming Pectra upgrade scheduled for May is anticipated to restore market confidence.
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