Ethereum, the second largest cryptocurrency by market capitalization, has seen a significant drop in wages and is gaining attention in the crypto market.
In a recent tweet, IntotheBlock said it had dropped total ETH fees in the quarter, marking its lowest level since 2020. Data presented by IntotheBlock shows that total ETH fees fell from 59.6% to $208 million. In the first quarter, ETH prices fell 49%, sweeping out more than $170 billion in market value. This was the third worst quarter on ETH since 2016.
Total ETH fees have fallen to the lowest level since the quarter since 2020. It was mainly driven by increased gas limits and trades moving to L2S pic.twitter.com/clmoffttwa
– Intotheblock (@intotheblock) April 4, 2025
Intotheblock has identified two main reasons for Ethereum’s lower prices. There is an increase in gas limits and an increase in movement of activities to Layer-2 (L2) solutions.
In February, Ethereum raised gas restrictions for the first time in 2021 after more than half of its validators approved the changes. This was implemented automatically without the need for a hard fork.
Ethereum’s trading capacity increased when Valitter decided to raise the gas limit to about 32 million units, with a maximum projection capacity of 36 million units.
Gas limits specify the total amount of gas that can be used in a block. If transactions within a block exceed this limit, they will either be held up to the next block or compete for inclusion based on the gas price offered. Gas limits last increased in 2021 to 15 million to 30 million gas units.
Pectra Mainnet Upgrade is Coming
One of Ethereum’s most important enhancements since its transition to a 2022 certification consensus mechanism, Pectra is scheduled to hit the Ethereum mainnet on May 7th.
Originally intended for release in March 2025, Pektra was delayed due to the final issue of Holsky Testnet, but it works smoothly with a hoodie testnet created in response to testnet issues. This upgrade also encountered a small problem in the Sepolia testnet in early March, which was eventually identified and resolved.
Ethereum has not escaped the recent market decline. The second largest cryptocurrency by market capitalization has declined 6.3% each week in the last 24 hours, up 0.64%, trading at $1,778 at press.
