Ethereum is under pressure again, with ETH falling to $2,700, an 8% drop in the last 24 hours. But it’s not just the price chart that worries traders. According to 10x Research, Ethereum’s biggest problem is its own network activity, which has remained low for almost two years.
With fewer users, lower fees, and quiet DeFi activity, the Ethereum network simply isn’t winning like it used to.
And now this low demand raises questions about how ETH should be valued in the future.
ETH Activity Dropped Even With Lower Fees
ETH has always been strongly tied to network demand. In 2020-2021, people rushed to DeFi, NFTs, staking, and crypto gaming, which pushed ETH fees sky high. These high fees helped ETH stay strong even when the market was weak.
But since mid-2024, things have taken a reverse direction.
Even though fees are now cheaper and many users have migrated to Layer 2 networks like Arbitrum, Optimism, and Base, activity on Ethereum’s mainnet has not picked up.
DeFi usage is still low, NFT trading is a fraction of what it was, and overall fee generation has declined sharply.
Network demand has been weak for almost two years now, and this weakness is clearly reflected in the price of ETH today.
Net inflation rises again
Ethereum was expected to become “deflationary,” burning more ETH than it creates. But over the past three years,
- 4.2 million ETH issued in the last 3 years
- Only 3.5 million ETH was burned
This means that Ethereum has become inflationary, mainly because the burn is not enough to negate new supply.
Can Ethereum Price Recover?
According to 10x Research, price recovery depends on actual usage, not just hype. Two things could cause ETH to rise:
However, 10x Research notes two possible paths that could drive the price of ETH higher.
- First, regulatory clarity in the United States, enabling institutional participation in DeFi
- Second, a new wave of Web3 activity, which could lead to higher fees and stronger usage.
Until then, the market may continue to treat Ethereum as a speculative asset rather than a productive network.
FAQs
Why did the ETH price drop today?
ETH is down today because low network activity, declining fee revenue, and rising net inflation are reducing demand and putting pressure on prices.
What could help Ethereum price recover?
Regulatory clarity in the United States and a new wave of Web3 activity could increase network usage, fees, and the long-term value of ETH.
What is the ETH price prediction for 2025?
According to our Ethereum price forecast for 2025, the ETH price could reach a maximum of $9,428.11.
What will Ethereum be in 5 years?
According to our Ethereum Price Prediction 2030, the ETH coin price could reach a maximum of $71,594.69 by 2030.
