Ethereum Daily Fees Hit 5-Month Low Amid Rising Supply and Layer-2 Competition

On February 8, 2025, Ethereum's daily transaction fees plummeted to $731,472, marking the lowest level since September 2024, according to Token Terminal. This is the first time in five months that daily revenue has dropped below $1 million. The decline comes amid a rising ETH supply since April 2024, reversing the deflationary effects of the Merge in September 2022. While accumulation addresses bought 330,705 ETH ($833 million) on February 7, a record single-day inflow, Ethereum faces increasing competition from networks like Tron and Solana, and internal conflicts within the Ethereum Foundation.