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Ethereum’s Fee Collapse and the Future of Layer-1 Economics

Ethereum’s Fee Collapse and the Future of Layer-1 Economics

Published:
2025-11-12 02:29:07
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[TRADE_PLUGIN]ETHUSDT,ETHUSDT[/TRADE_PLUGIN]

Ethereum transaction fees have plummeted to a historic low of 0.067 gwei, with standard exchange transactions now costing just $0.11—a dramatic drop from the $150+ fees seen during peak congestion in 2021. This decline follows the Dencun upgrade in March 2024, which significantly reduced layer-2 solution costs but also raised concerns about the long-term sustainability of Ethereum's base-layer revenue model. As network activity reflects broader market trends, the crypto community is left pondering the implications for Ethereum's future economic structure and scalability.

Ethereum Transaction Fees Hit Historic Low at 0.067 Gwei Amid Market Slowdown

Ethereum gas fees plummeted to 0.067 gwei on Sunday, marking the lowest level in years. A standard exchange transaction now costs just $0.11—a stark contrast to the $150+ fees seen during peak congestion in 2021. The drop follows March 2024's Dencun upgrade, which slashed layer-2 solution costs but triggered concerns about the sustainability of Ethereum's base-layer revenue model.

Network activity mirrors broader crypto market stagnation. While traders celebrate micro-fees for swaps ($0.11), NFT purchases ($0.19), and cross-chain transfers ($0.04), the 99% collapse in base-layer revenue since January exposes structural vulnerabilities. This follows October's flash crash, suggesting fee volatility may become endemic as scalability solutions mature.

Jumper Exchange Enhances Cross-Chain Liquidity for Staking Derivatives

Jumper Exchange has rolled out expanded routing capabilities for liquid staking tokens (LSTs) and liquid restaking tokens (LRTs) across major blockchain networks. The upgrade includes optimized handling of rebasing assets like stETH and their wrapped counterparts, aiming to reduce slippage and execution costs in cross-chain transfers.

The MOVE addresses growing demand for seamless movement of staked assets as liquid staking becomes a dominant DeFi sector. Jumper's multi-chain aggregation leverages bridges and decentralized exchanges to maintain capital efficiency during cross-chain rebalancing.

"Market expectations now demand staked assets to remain liquid and interoperable across chains," said Jordan Neary, Marketing Lead at Jumper Exchange. The update specifically targets improved routing for Ethereum-based staking derivatives while enhancing execution reliability for cross-chain strategies.

Hong Kong Unveils Blockchain Digital Bonds to Boost Crypto Hub Goals

Hong Kong has launched multi-currency digital bonds as part of its strategy to establish itself as a global digital finance hub. The bonds, denominated in US dollars, Hong Kong dollars, euros, and offshore yuan, leverage blockchain technology for enhanced transparency and security. This marks the city's third foray into the digital bond market, with pricing expected as early as Monday.

The blockchain-backed bonds will be issued on platforms like Ethereum, streamlining management and accessibility for global investors. Tokenized green bonds and market funds further solidify Hong Kong's growing prominence in digital finance.

Ethereum (ETH) Shows Signs of Recovery Amid Short-Term Bullish Forecast

Ethereum's price trajectory hints at a potential 10.45% surge, targeting $3,934.03 within five days. The second-largest cryptocurrency currently trades at $3,585.93, marking a 5.66% daily gain that outpaces both Bitcoin and the broader market's 4.83% rise.

Despite a 12.22% monthly decline and 16.43% quarterly drop, ETH maintains a 17.92% year-over-year increase from its $3,040.95 level in November 2024. The asset's resilience is notable—14 positive closing days in the past month signal building momentum, even as traders remain divided on long-term prospects.

Technical indicators suggest a recovery pattern emerging from earlier November weakness. Ethereum's current cycle peak of $4,946.50, achieved in August 2025, remains the key resistance level to watch if bullish momentum sustains.

Ethereum Breaks $3,500 Resistance Amid Institutional Inflows and Technical Strength

Ethereum surged past the $3,500 resistance level, with analysts eyeing a potential test of $4,000 as bullish momentum builds. The recovery follows a 12% drop in November, which saw ETH briefly touch $3,000 before institutional buyers stepped in. Over $1.37 billion in ETH holdings were added recently, signaling growing confidence among large investors.

Technical indicators reinforce the optimism. A trendline support established in April 2025 remains intact, while the MACD crossover suggests further upside. "$ETH price bounced back and is now above $3,500. This means buyers are strong," noted Tom Tucker (@WhatzTheTicker). The $3,425 level is now critical support—a breach could invalidate the bullish thesis.

Market sentiment reflects renewed vigor, with retail and institutional participants alike betting on Ethereum's resilience. Lark Davis (@TheCryptoLark) highlighted the significance of the daily 20 EMA as a near-term resistance barrier, though the broader trajectory appears upward.

Ethereum Surges to $3500: Analysts Eye $4000 Target by Year-End

Ethereum has broken through the $3,500 resistance level, trading at $3,627.73 with a 7.49% surge in the last 24 hours. Institutional interest and ETF inflows are fueling optimism, with technical charts suggesting a potential rally to $4,000 if momentum holds.

The breakthrough follows weeks of consolidation, reigniting retail and institutional demand. Analysts highlight the psychological significance of the $3,500 milestone, with social media buzzing about the achievement. A prominent crypto analyst's giveaway post celebrating the price target has gone viral, further amplifying market enthusiasm.

TradingView charts reveal a clear bullish pattern, with the $3,500 rebound serving as a springboard for higher valuations. The second-largest cryptocurrency now faces its next key test at the $4,000 resistance level, which market participants increasingly view as achievable before year-end.

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