Ethereum Fees Drop by Half as Network Activity Surges

Ethereum transaction fees have dropped by nearly half in the past year, but surprisingly, network activity has actually increased. According to a recent report from Bitwise, Ethereum processed over 203.9 million transactions in the second quarter of 2025, up from 121.1 million in the same period last year.

The report attributes this trend to the protocol's design changes, which have allowed for more space in blocks and reduced transaction costs. This has made it cheaper for users to conduct transactions on the network, leading to a surge in activity.

While revenue from fees has fallen in dollar terms due to the decline in the ETH exchange rate, revenue in ETH itself has increased, marking the first quarterly increase in over a year and a half.

The volume of staking on Ethereum has also reached new records, with 40.2 million coins locked, representing about 33% of the total supply. Institutional investors are believed to have played a significant role in this surge.