Transaction costs on the Ethereum network fell 70 %, from $ 23 million to $ 7.5 million per day. This spectacular drop comes in a context of major transformation for blockchain, with the announcement of two significant updates scheduled for April 2025.
Ethereum eliminates 70 % of its costs before its major update
Transaction costs in Ethereum have dropped more than 70 % this week, from 23 million to 7.5 million dollars daily. This significant drop results from the increase in limited gas, making it possible to treat more transactions by block. This technical development is timely, while the network is about to deploy Pectra, its most important update to date.
History shows that a drop in costs generally stimulates network activity. The previous decreases in 2021 and mid-2023 had led to a significant increase in the number of active addresses and daily transactions.
The Pectra update, scheduled for April, should amplify this trend by doubling the capacity of data blobs, going from three to six, thus considerably improving the scalability of the network.
The first signs of this transformation are already visible: ETH reserves on exchange platforms have decreased by almost a million units in ten days, from 19.7 to 18.8 million ETH. This movement reflects an investor trend to keep their assets rather than selling them.
Promising prospects despite technical challenges
The timing of this drop in fees aligns perfectly with the major updates of Ethereum. In addition to Pectra, the Fusaka update is also scheduled for April 2025, aimed at optimizing the transaction inclusion process. These improvement respond to an urgent demand for the market, in particular expressed by the venture capital company paradigm.
However, Ethereum faces persistent technical challenges. The ETH price remains down 1.1 %over the year, contrasting with Bitcoin (+89.6 %) and Solana (+68.7 %) performance. The technical resistance around the $ 2,800 remains difficult to cross, with an RSI at 39.34 indicating conditions of occurrence, but without significant bullish momentum.
To materialize its potential, Ethereum will have to capitalize on these technical improvements and the reduction in costs to stimulate adoption and activity on its network. The synergy between the increased network efficiency and the reduction of costs creates a terrain favorable to a new phase of expansion. If these conditions persist, a strong assessment of the course could follow.
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