Ethereum Network Fees: A Sharp Decline
The Ethereum network has seen a significant drop in fees, with a 62% decline over the past 30 days, according to data from Nansen. This sharp pullback has raised concerns about the potential impact on the price of ETH. However, despite this decline, activity across the layer-2 ecosystem continues to expand, with transactions on Base rising by 108% and Polygon recording an 81% increase.
Layer-2 Ecosystem: A Sustainable Growth Model
The growth of the layer-2 ecosystem is seen as a sustainable model for Ethereum’s future development. With the shift to layer-2 scaling, Ethereum’s ecosystem has fragmented into a hybrid model, where layer-2 solutions compete for user attention and capital. This divergence is evident in the ETH/BTC price ratio, which surged 62% in Q3 2025, as reported by Ainvest.
Technical Analysis: A Closer Look
From a technical analysis perspective, Ethereum’s annualized funding rate for ETH perpetual futures held near 9%, reflecting a fairly even distribution of leveraged positions between buyers and sellers. This indicator tends to oscillate between 6% and 12% to account for capital costs, with levels above that range usually signaling stronger bullish positioning, as noted by TradingView.
Expert Insights: Navigating the Market
Experts in the field, such as those at Reddit’s CryptoCurrency community, emphasize the importance of continuous learning and understanding market dynamics, technical analysis, and fundamental analysis. They also highlight the value of dollar-cost averaging and holding long-term, as well as the need for a mix of long-term investing and short-term trading based on individual risk tolerance and goals.
Conclusion: Future Implications
In conclusion, while the decline in Ethereum network fees may raise concerns about the potential impact on ETH’s price, the growth of the layer-2 ecosystem and the expansion of activity across this ecosystem suggest a sustainable model for Ethereum’s future development. As the market continues to evolve, it’s essential for investors and traders to stay informed and adapt their strategies accordingly.