ETH News: Ethereum Network Performance Tanks 60% as ETH/BTC Crashes 50% in 2025!

The Ethereum network performance is under severe pressure as transaction fees on Ethereum have plummeted to their lowest levels since 2020. Research from Crypto Miners points to a significant decline in demand for block space. 

While Ethereum co-founder Vitalik Buterin has not yet made a statement. The sudden drop in ETH price and network activity is raising alarm among investors. The crypto market today is still volatile, adding to the woes of Ethereum’s standing in the decentralized finance (DeFi) and NFT ecosystems.

Ethereum Network Activity Slows to a Crawl

The decline in Ethereum network performance has accelerated, with transaction fees on Ethereum plunging 60% in the first quarter of 2025. According to the report, total network fees collapsed to just $208 million by April 4. It is a staggering fall from periods when daily fees often topped $20 million.

Analysts warn that the drop in fee generation mirrors a steep decline in user engagement across DeFi platforms, NFT marketplaces, and Layer 2 solutions, all previously major drivers of Ethereum’s growth.

Validators are also facing financial strain, as lower fee rewards abrupt incentives for maintaining network security. At a time when the crypto market today demands faster and cheaper solutions, Ethereum’s weakening fundamentals are raising serious doubts about its ability to maintain leadership among Layer 1 blockchains.

ETH Price Hits New Lows as Bearish Pressure Builds

Ethereum price dropping to around $1,566, as shown on the below daily chart. The MACD indicator confirms strong negative momentum, with the MACD line at -132.11 and the signal line at -111.22, suggesting sellers remain in control. Minor bounces like the latest +0.85% move are seen, but the overall trend remains down.

Chart 1 – Provided by Owienova, published on TradingView, April 9, 2025.

Meanwhile, the ETH/BTC pair fell to 0.01896 BTC, recording five months of decline. Ethereum has been the worst-performing major cryptocurrency in the last 24 hours, falling behind even meme coins such as Dogecoin and big-cap altcoins such as Cardano.

Adding to the concerns, transaction fees on Ethereum, which previously surged above $20 million during market highs, have now fallen below $2 million daily. This is now intensifying questions about Ethereum’s ability to sustain its ecosystem.

Future Outlook: Is Ethereum at Risk of Losing Its Edge?

The sudden drop in Ethereum network performance has raised questions about its long-term sustainability. With falling transaction fees on Ethereum, incentives to validators are decreasing, and users are looking for alternatives. Solana and Avalanche allow for faster transaction rates and lower fees.

Although Layer 2 solutions such as Arbitrum and Optimism continue to draw some traffic, concerns remain regarding Ethereum’s mainnet applicability. If the ETH price cannot sustain above $1,400, technical analysts indicate a possible retest of the $1,200 level or worse.

While whale investors have demonstrated strength, holding ETH under the $1,800 level, wider trends are bearish. The ETH/BTC pair has dropped more than 50% in 2025 alone, demonstrating Ethereum’s growing struggle compared to Bitcoin.

Final Verdict: Ethereum at a Crossroads of Crisis

The Ethereum network performance is under unprecedented stress, with plummeting Ethereum transaction fees and a falling ETH price sending outright warning signals. In a growingly competitive crypto environment, Ethereum will need to spark user activity within its ecosystem again to survive even greater losses of market share. The next few months will determine the future of Ethereum.