Ethereum registers less than one million dollars worth of daily transaction fees for the first time since September 2024. According to Token Terminal numbers Ethereum earned $731,472 from transaction fees on Feb. 8 which made it only the second time since November 2020 that the network generated less than this amount daily.
Network activity dropped below $1 million daily fees from August 17 to September 8 in the year 2024. Ethereum exchange-traded funds have been approved in multiple markets but ETH has produced weaker returns than Bitcoin in recent times. Market experts link this price regression to growing amounts of Ethereum appearing in supply after April 2024.
Ethereum Faces Rising Competition
This change reversed the Merge’s deflationary impact from September 2022. The growing Ethereum supply after the Merge has made the currency harder to sell at higher prices. Following the Merge the system suppressed Ether supply growth through mining elimination while the London hard fork introduced ETH destruction as the initial measure to control supply in August 2021.
On-chain activity changes have lowered ETH being destroyed at rates that reduce the deflationary properties. By using layer-2 solutions Ethereum has fixed its core network congestion but those solutions steer transactions away from its central operations. The growing number of layer-2 solutions creates communication breakdowns that worry people working on the network.
Ethereum struggles to stay ahead as several blockchain projects try to take its place. Tron leads as the favorite platform for stablecoin services while Solana dominates the DeFi and memecoin sectors. During the last three months Token Terminal statistics show these networks produced more total fees than Ethereum.
The activities inside the Ethereum Foundation bring uncertainty to its platform. Vitalik Buterin took over as head of the Ethereum Foundation when he took complete control in January after staff changes led to leadership concerns and research role conflicts with EigenLayer.
Ethereum fans do not lose faith despite present difficulties. On Feb. 7 accumulation wallets bought 330705 ETH worth $833 million in a single day which CryptoQuant recorded as the biggest accumulation outflow to date. Ethereum keeps attracting investors whose belief in its future success remains strong no matter what happens in the market.
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