Ethereum transaction fees plummet 70% to lowest level since 2020

Ethereum transaction fees have plummeted, suggesting weak demand along with a decline in on-chain trading volume, TheBlock reported on the 19th (local time).
According to The Block's data and insights newsletter, on February 15, the seven-day moving average (7DMA) transaction fees on the Ethereum network fell to $0.77. The previous week it was $2.
The drop has pushed Ethereum's transaction fees to a four-year low, making it the first cryptocurrency to offer such low fees since July 2020.
The last time such a figure was recorded was in July 2020. Meanwhile, Bitcoin network activity hit its lowest in the past 12 months, with trading volume down 55% from its all-time high.
Ethereum average gas prices, measured in Gwei, show this trend even more clearly: Last week, Ethereum’s daily average median gas price
The index was at 1.61 GWEI, down from 1.19 GWEI on February 15, the lowest since The Block began tracking the metric in January 2020.
The 1.19 GWEI recorded in September 2024 was the second lowest since January 2020. Lower transaction fees usually lead to increased user activity.
While this is a trend, such a sharp drop likely signifies a recent slowdown in Ethereum on-chain activity, rather than an improvement in network efficiency.
Ethereum's 7DMA on-chain trading volume reached $4.19 billion on the 15th, down 46% from the previous week. This is the lowest daily volume since November 7, 2020.
This shows the trading volume.