The post Ethereum Struggles in 2025: Key Reasons Explained appeared on BitcoinEthereumNews.com.

Ethereum (ETH), the world’s second-largest cryptocurrency by market value, is going through a rough patch. After nearly a decade of being a major force in the crypto world, ETH has seen a sharp decline in 2025—its price falling by around 46% in the first quarter. Ethereum’s transaction fees have dropped to their lowest point since 2020, showing a big change in how people are using the network. According to blockchain analytics firm IntoTheBlock, total fees collected on Ethereum fell by nearly 60% in Q1 2025, reaching just $208 million by early April. Total ETH fees decreased to their lowest level since 2020 this quarter, primarily driven by the gas limit increase and transactions moving to L2s pic.twitter.com/CLmOFfttwa — IntoTheBlock (@intotheblock) April 4, 2025 Consequences of a Slower Burn Rate Another concern is Ethereum’s slowing burn rate. This rate is important because it helps reduce the number of ETH in circulation. But with fewer transactions happening, the amount of ETH being burned has dropped. In fact, fees from major platforms like Uniswap, MetaMask, and Tether have dropped by over 95% since late 2024. As a result, Ethereum’s inflation rate is starting to rise. DeFi analyst Michael Nadeau has warned that Ethereum’s inflation could soon be higher than Bitcoin’s, which could worry long-term holders. ETH burned is currently at its lowest level since EIP1559 was implemented in August of ’21. The drivers: Burned ETH from Uniswap is down 99% in March compared to November. Burn from Tether is down 95% over the same period. MetaMask burn is down 97%. 1inch is down 99%.… pic.twitter.com/wJFW6W46sK — Michael Nadeau | The DeFi Report (@JustDeauIt) April 3, 2025 Layer-2 Networks Are Taking Over A major reason for the drop in fees is the growing use of Layer-2 (L2) networks. These are built on top of…

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Filed under: News - @ April 5, 2025 3:24 pm