The Quiet Collapse of Ethereum Revenue.
Since early November, the 90-day moving average for total daily transaction fees on Ethereum has plummeted below 300 $ETH per day. This is a level of network fee generation not seen since July 2017. This structural shift is critical because it directly impacts the deflationary narrative. Lower fees equal less $ETH burned via EIP-1559. While the network is undeniably cheaper for users, the immediate scarcity mechanism is under pressure. The reality is that scaling has worked too well: volume has migrated to Layer 2 solutions. The long-term valuation model for $ETH is changing, shifting from pure transaction throughput to its role as the ultimate security layer and sequencer for the entire decentralized ecosystem. We must analyze this divergence carefully as $BTC continues its run.
Disclaimer: Not financial advice.
#Ethereum #OnChain #CryptoAnalysis #Glassnode #Scaling
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