Ethereum Gas Fees Hit Historic Lows as Institutional Demand for ETH Wanes in 2025
- Why Are Ethereum Gas Fees at Historic Lows?
- Institutional Demand for ETH Cools Off
- November: Ethereum’s Secret Bullish Month?
- FAQ: Ethereum’s Fee Crash and Demand Slump
Ethereum's gas fees have plummeted to near-record lows of just 0.16 gwei (about $0.01 per transaction), signaling a maturing infrastructure but also reflecting dwindling institutional interest. While layer-2 solutions like Pectra and Dencun upgrades have slashed costs, competitors like Solana offer even cheaper alternatives. Meanwhile, U.S. spot demand for ETH has stagnated, with Coinbase Premium indicators and CME futures data pointing to weakened investor confidence. However, historical trends suggest a potential bullish rebound for ethereum in November, as large holders quietly accumulate ETH. This article dives into the data, the drivers, and what it means for traders.
Why Are Ethereum Gas Fees at Historic Lows?
Ethereum’s transaction fees have dropped to a mere 0.16 gwei (roughly $0.01), levels not seen since the network’s early days. This isn’t just luck—it’s the result of upgrades like(deployed in May 2025), which doubled layer-2 (L2) storage capacity and cut L2 fees by ~50%. Theupgrade further offloaded transactions from the mainnet, easing congestion. But let’s be real: Ethereum still isn’t the cheapest. Solana, for instance, processes transactions at $0.00025 apiece, per. While Ethereum’s tech is evolving, the "ultra-cheap" crown belongs elsewhere—for now.
Institutional Demand for ETH Cools Off
The U.S. spot market for Ethereum has hit a wall. Data reveals that ETH purchases by American investors have flatlined since mid-August 2025. The—a gauge of U.S. buying pressure—has collapsed to near zero, while CME’s 6-month ETH futures basis slid to 3%, a 3-month low. Analysts blame the fade of the: after record outflows of $796 million in late September, institutional inflows stalled. Macro risks haven’t helped either. With bond yields spiking and Fed rate cuts uncertain, big players are avoiding high-beta assets like ETH. "It’s a classic risk-off move," notes a BTCC strategist. "Even crypto natives are pivoting to hotter narratives."
November: Ethereum’s Secret Bullish Month?
Don’t count ETH out yet. Historically, November has been kind to Ethereum, delivering an average monthly return of 6.93%. In 2024, it skyrocketed 47.4%. This time,(wallets holding 1K–100K ETH) are betting on a repeat—they’ve scooped up 1.64 million ETH ($6.4 billion) in October despite ETH’s 7% dip, per. Meanwhile, mid-tier holders (100–10K ETH) are rebuilding positions after shedding 1.36 million ETH earlier this month. Could this be the calm before a November storm? Traders are watching Fed Chair Powell’s hints about rate cuts for clues.
FAQ: Ethereum’s Fee Crash and Demand Slump
How low are Ethereum fees right now?
As of October 2025, average Ethereum gas fees are ~0.16 gwei ($0.01), with token swaps costing $0.15 and NFT sales at $0.27.
Why is institutional demand for ETH weakening?
The Grayscale arbitrage opportunity dried up post-ETF launch, and macro risks (high yields, Fed uncertainty) reduced appetite for volatile assets.
Is Solana really cheaper than Ethereum?
Yes—Solana’s fees average $0.00025 per transaction, per Cryptopolitan, thanks to its high-throughput design.
What’s the outlook for ETH in November 2025?
Historically bullish (avg. +6.93%), but current trends depend on whale accumulation and macro conditions.
