Ξ Ethereum: Ethereum Gas Fees

Ethereum gas fees have fallen sharply to an average of $1.20 per transaction in the past week, a 65 % drop from the $3.40 peak seen in early May. The decline is largely driven by increased usage of layer‑2 rollups such as Optimism and Arbitrum, which now process over 70 % of the network’s total volume. On the layer‑1, the base fee has stabilized near the $0.30 floor, while priority fees remain modest, reflecting reduced congestion and improved protocol optimizations. The fee reduction coincides with a shift in retail and institutional spending, as Robinhood’s on‑chain revenue now exceeds Ethereum’s, with daily app revenue topping $4.5 million versus $3.2 million for ETH. This trend suggests a migration of user activity to alternative chains offering lower costs, potentially dampening Ethereum’s growth trajectory.