What pushed ETH fees lower?

TLDR

Ethereum (ETH) fees fell because on?chain demand cooled and most activity shifted to Layer?2 rollups, reducing congestion on the mainnet and lowering gas costs, confirmed by a seven?year low in fee revenue reported this week.

1. Layer?2s now process the majority of transactions, easing mainnet load and costs this weeks analysis.
2. Mainnet fees dropped 45% over 30 days and active addresses fell 14% over seven days data cited.
3. Lower fees mean less ETH burned, softening the ultrasound money effect near term context.

Deep Dive

1. Layer?2 Migration

The core driver is a structural shift of user activity to Layer?2s like Base, which now handle the vast majority of transactions and settle batches to L1. That reduces mainnet congestion and typical gas paid per transaction.

• Recent analysis highlights Layer?2s processing roughly 94% of Ethereum transactions while mainnet fee revenue fell to a seven?year low on a 90?day average this week.

2. Lower Blockspace Demand

Beyond rollups, core mainnet usage eased. Fewer active addresses and transactions mean less competition for inclusion in blocks, directly lowering fees.

1. Ethereum fees fell 45% over the past 30 days and active addresses dropped 14% over the last seven days cited data.
2. Active addresses are near multi?month lows, signaling a cooler participation phase and reduced blockspace pressure report.

3. Burn Dynamics and Supply

Lower fees reduce the amount of ETH burned under EIP?1559, temporarily softening net negative issuance. That does not break Ethereums long?term scaling path, but it does trim the near?term ultrasound money effect.

• Fee revenue at a seven?year low implies less burn, which the market is weighing alongside strong Layer?2 growth and institutional participation overview.

Conclusion

ETH fees fell due to a two?part shift. Activity migrated onto Layer?2s and mainnet demand cooled, easing congestion and reducing gas. Fees will fluctuate with usage spikes and settlement patterns, so a pickup in active addresses or L2 batch costs would likely lift fees again.