Ethereum Fees Crash 87% as USDT Wallets Plummet
Ethereum's network fees have plummeted by 86.8%, dropping from $0.72 in April to $0.095. This decline has made Ethereum mainnet significantly cheaper to use, creating a more attractive environment for transactions.
On the other hand, Ethereum-based USDT has seen a sharp drop of 251,350 non-empty wallets over an 11-day period, marking its steepest short-term contraction since December 2022. However, this decline does not necessarily mean that capital has exited the crypto market.
The reduction in wallet numbers could be due to various factors such as consolidation of smaller balances, transfers to centralized exchanges, or migration towards Layer-2 networks. If Ethereum-based USDT wallets continue falling while overall stablecoin liquidity remains resilient, it may indicate redistribution rather than outright capital destruction.