Ethereum fees have experienced a significant decrease this quarter, falling to their lowest level since 2020 according to IntoTheBlock. The dramatic decline is attributed to two primary factors: an increase in the gas limit and a migration of transactions to Layer-2 solutions. Ethereum’s total fees fell by 59.6% to $208 million, dropping significantly from the market capitalization’s 49% decline during the first quarter. This drop marks the third worst quarter for Ethereum since 2016. The gas limit increase is a key driver, as validators raised the limit in February, granting more transaction capacity. Additionally, a notable shift in activity has occurred with more transactions migrating to Layer-2 solutions, further contributing to the decrease in fees. The Pectra mainnet upgrade, set for May 7th, will offer further potential for Ethereum’s growth and efficiency. However, Ethereum’s market decline persists, with the asset down 6.3% weekly and 0.64% in the past 24 hours, trading at $1,778 as of press time.