Glassnode reported on December 8 that Ethereum's daily transaction fees, using a 90-day moving average, have declined to levels not seen since July 2017. This fee drop indicates diminished on-chain competition and affects Ethereum's fee burn mechanism, which may impact its monetary policy and broader market dynamics.
Ethereum Fees Slip Below 300 ETH Daily Threshold
Glassnode's report marked a pivotal point as Ethereum’s daily total fees fell below 300 ETH per day, a level not observed since 2017. Glassnode, an on-chain data provider, notably ties these figures to network developments like the Dencun upgrade, which helped reduce fees.
The report suggests that lowered fees have moved Ethereum towards net inflation, reversing deflationary assertions noted post-EIP-1559. On-chain demand competition for blockspace has become minimal, affecting the network’s fiscal aspects.
Following the Dencun upgrade and a reduction in network fees, ETH has transitioned back into net inflation – marking a reversal of the post‑Merge deflationary thesis and raising questions about long‑term value accrual.
Market actors and commentators acknowledge the trend, albeit cautiously. Notably absent are major public reactions from key figures such as Vitalik Buterin. Institutional interest in regulated ETH derivatives remains robust, demonstrating a stable demand framework outside of on-chain metrics.
Market Resilience Amid Historical Cycles and Price Shifts
Ethereum's shift to net inflation due to reduced fees is echoed by historical cycles, such as those seen before the 2017 DeFi boom, showing parallels in network adaptation to lower activity conditions.
As of December 8, 2025, Ethereum (ETH) holds a price of $3,131.65. Despite a 24-hour decline of 0.17%, ETH rises 13.37% over the week. Its market cap stands at $378 billion, but 90-day losses show over 27% reduction.
The Coincu research team suggests these fee reductions could drive cheaper DeFi engagements and expand Layer-2 ecosystems. Regulatory frameworks around ETH derivative markets on platforms like CME appear increasingly key, supporting ETH's macroeconomic status beyond immediate on-chain utilizations. Bitmine holds 3 percent of the Ethereum supply, further solidifying its presence in the market.