A report by Markus Thielen of Matrixport, published on July 9, 2025, reveals an intriguing phenomenon in the cryptocurrency market. Despite a sharp drop in transaction fees, Ethereum's price remains stable.
Reasons for Ethereum's Price Stability
In March, Ethereum underwent a network update leading to virtually zero gas fees. Despite significant fluctuations in price, Ethereum maintains its stability, showcasing the cryptocurrency's strength. This resilience is noted even against the backdrop of traditionally low fundamental indicators associated with transaction fees.
Influence of Institutional Forces on Ethereum
The strength of Ethereum's price cannot be solely attributed to network activity. Institutional interest plays a key role, with some corporations viewing Ethereum as a treasury asset. Most stablecoin transactions still occur on the Ethereum network, preserving its critical functionality. Thielen emphasizes that ongoing negotiations regarding the "GENIUS Act" in the U.S. bolster Ethereum's institutional significance. Additionally, the month of July has historically been favorable for Ethereum, contributing to price resilience.
Summary of Key Insights
Key insights include:
* Ethereum's gas fees decreased from 36 Gwei to near-zero levels since April 2024. * Price stability of Ethereum between $1,400 and $3,800 despite low fees and network activity. * Institutional adoption and stablecoin demand on Ethereum fuel price stability. * Seasonal patterns add buoyancy to Ethereum's current performance.
Ethereum's ability to maintain its value amid abnormally low fees illustrates the resilience and complexity of market dynamics. The blend of institutional interest, key legislation, and seasonal trends paints an intriguing picture for Ethereum's current and future trajectory.
