A significant drop in Ethereum transaction fees has been observed, reaching a five-year low. This decrease can potentially offer an investment opportunity, as the lower costs could facilitate wider adoption and entry into the cryptocurrency network. However, investors should also consider the uncertain global economic context, with recent trade measures by Donald Trump causing substantial market volatility. Analysts suggest that this trend is driven by reduced activity on the Ethereum blockchain. Fewer users are sending ETH or engaging in smart contracts, leading to less competition for transaction confirmations and subsequently lower fees. This highlights the fundamental law of supply and demand. To illustrate, Brian Quinlivan from Santiment explains that higher user activity translates into higher fees. Conversely, lower use results in lower fees. The upcoming Pectra update on May 7th could significantly impact Ethereum’s future. This update aims to double the capacity of layer 2 blobs, reduce transaction fees, and enable payment for these fees using stablecoins like USDC and DAI. These changes are expected to boost Ethereum’s competitiveness and accessibility, potentially reviving network usage and activity. The coming weeks will be crucial in determining whether this is just a short-term trend or the beginning of a stronger recovery.