Falling ETH Network Fees Fuel Fears of Weak Onchain Demand

[mendez]

Ethereum network fees declined 13% this week, even with stable transaction counts — a worrying divergence for bulls. With ETH’s burn mechanism depending on active usage, shrinking fees raise concerns of a “reverse burn” environment. Combined with waning whale leverage, traders see limited catalysts for near-term upside.

[Nahid Hossen]

Lower fees mean lower activity—onchain usage needs to pick up.

[Rimon Khan]

Demand slowdown could reflect broader hesitation among retail users.