Ethereum News: Price Teases Breakout While Facing Revenue Drop Due to Shifting Trends

Ethereum Price Teases a Breakout—Can This Spark a Momentum Shift?

Ethereum price started a recovery wave above the $1,880 zone and is now consolidating NEAR the $2,020 resistance. The price is trading below $1,950 and the 100-hourly Simple Moving Average. A short-term rising channel is forming with support at $1,980. To start a decent increase, the pair must clear the $2,020 and $2,040 resistance levels.

Ethereum Faces 95% Revenue Drop Amid Shifting Layer 2 and NFT Trends

Ethereum’s transaction fee revenue is projected to reach approximately $217 million in Q1 2025, representing a 95% reduction from the all-time high of $4.3 billion recorded in Q4 2021. This decline can be attributed to a decrease in Layer 2 contributions and a significant dip in activity within the non-fungible token (NFT) market. Token Terminal highlighted this shift in their latest post.

Fidelity Joins Tokenization Trend with On-Chain Treasury Fund Filing

Fidelity Investments, a $5.9 trillion asset management giant, has filed to tokenize a share class of its US Treasury money market fund on Ethereum. This marks Fidelity’s first major move into asset tokenization. The filing, submitted to the US SEC on March 21, outlines Fidelity’s plan to launch an “OnChain” share class of its $80m Fidelity Treasury Digital Fund (FYHXX). While the underlying assets will stay in traditional custody, investor share records will be logged on the Ethereum blockchain to improve transparency and traceability. The official ownership record will still be kept off-chain by Fidelity’s transfer agent, with blockchain entries reconciled with this record daily.

Ethereum’s Transaction Fee Revenue Drops, Coinbase Avoids Supply Chain Attack

Ethereum’s quarterly transaction fee revenue has dropped about 95% from its peak in Q4 2021, mainly due to lower Layer 2 contributions and a decline in NFT market activity. Meanwhile, Coinbase avoided a supply chain attack that could have compromised its open-source infrastructure, as flagged by SlowMist and reported by Palo Alto Networks’ Unit 42. Additionally, the Crypto Fear & Greed Index stands at 28, indicating fear in the market and suggesting potential buying opportunities due to perceived undervaluation.