Ethereum Faces Challenges Amidst Declining Transaction Fees and Market Slump

Ethereum has encountered significant challenges in recent months. While transaction fees have plummeted by 60% in Q1 2025, due largely to the adoption of Layer-2 solutions like Coinbase’s Base which offers faster processing speeds, Ethereum’s market share has also shrunk significantly. Ether’s price dropped by an alarming 45%, hitting its lowest point since 2022. Despite this decline, high-net worth investors (whales) continue to acquire Ethereum, hoping for a potential rebound in the face of reduced transaction fees and increased competition from innovative blockchain technologies.