Ethereum fees hit ultra-lows in the run-up to network upgrade

Transaction fees on the Ethereum network have plummeted to historic lows, averaging $0.17. The Santiment platform indicates that the last time activity levels hit such a low point was in 2020, primarily due to a fall in user engagement and sluggish demand for transactions on the blockchain.

Experts suggest such an interest drop is linked to economic uncertainty. US trade policies, namely Donald Trump's sweeping tariffs, are putting extra pressure on financial markets, including the crypto industry. This has led to a reduced appetite among traders, especially for highly liquid assets such as ETH.

In the meantime, developers are gearing up for the launch of a major Ethereum update known as Pectra, set for May 7, 2025. This upgrade is expected to enhance network capacity, enable transaction fees to be paid in stablecoins, and expand the stake limit. Market participants expect this upgrade to stimulate activity and boost Ethereum's appeal during this extended period of inactivity, as reported by Coinotag.