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Transactions Are Up 54%, But Ethereum Fees Have Dropped 58%. What Does This Mean for ETH Holders?
By IH_AlphaInsights | November 7, 2026
Ethereum is going through an interesting phase, and the latest numbers are raising an important question for crypto investors.
The network is getting busier, transactions are increasing, and users are paying much less in fees. Sounds like great news, right?
But there is another side to this story.
While Ethereum is growing as a network, the amount of ETH being burned has dropped sharply. At the same time, the total ETH supply is increasing.
So, is Ethereum becoming stronger, or is this creating a new problem for ETH holders?
Let's break it down in simple words.
1. Ethereum Is Getting More Active, But Fees Are Falling
According to the latest report from Ethereum Institutional, Ethereum's main network processed around 2.17 million transactions per day between January and October 2026.
That's approximately 54% more than the same period last year.
Here are the numbers that caught my attention:
- Daily transactions increased by 54%.
- Average median transaction fees dropped from $0.35 to just $0.035.
- Total fees paid in ETH fell by around 58%.
- Around 842,000 new ETH entered the supply during the reported period.
This tells us something important: Ethereum is becoming cheaper and easier to use, but that growth is not creating the same level of fee income for the network.
2. Why Is Ethereum Burning Less ETH?
One of Ethereum's biggest features is its fee-burning system.
Whenever users make transactions on the main network, a part of the transaction fee is permanently removed from circulation.
This is known as ETH burning.
But there is a problem.
As transaction fees become cheaper, the amount of ETH burned also becomes smaller.
The latest figures show that total fees fell from approximately 160,676 ETH to 67,665 ETH.
That is a huge reduction.
In simple words, Ethereum is processing more transactions, but each transaction is generating much less in fees.
This makes it harder for ETH burning to balance the new coins entering circulation.
3. The Supply Problem: Why Should ETH Holders Care?
This is probably the most important part of the entire story.
Ethereum does not have a fixed maximum supply.
New ETH is created to reward validators who help secure the network. At the same time, some ETH is burned through transaction fees.
When more ETH is created than burned, the total supply increases.
According to the figures in the latest report:
- ETH supply reached approximately 122.18 million.
- Around 842,000 ETH were added during the reported period.
- Annual supply growth was around 0.7% through October 31.
Why does this matter?
When the supply increases, each ETH represents a slightly smaller share of the total supply.
This does not automatically mean ETH's price will fall, but it does create additional pressure that investors should understand.
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4. Layer 2 Networks Are Growing Fast
There is another interesting development happening inside the Ethereum ecosystem.
Layer 2 networks are becoming increasingly popular.
These networks help users complete transactions more cheaply and quickly while still using Ethereum for important security and settlement functions.
In 2026:
- Layer 2 networks averaged around 23.3 million transactions per day.
- Their activity increased by approximately 18%.
- Base became one of the leading networks, with around 8.3 million daily transactions in the reported 30-day period.
This is good news for the Ethereum ecosystem.
However, cheaper transactions on Layer 2 networks do not necessarily create large amounts of ETH burning.
So Ethereum's adoption is growing, but the direct benefit to ETH's supply reduction remains limited.
5. ETH Staking Is Increasing
Not everything in this report is negative.
Ethereum staking is also growing.
Around 44.2 million ETH were staked by October 31, compared with approximately 33.3 million one year earlier.
That means more investors are locking their ETH to help secure the network and earn rewards.
This can reduce the amount of ETH freely available for trading.
However, staking rewards are not guaranteed profits. Investors should also consider market risk, validator fees and possible withdrawal restrictions.
The important point is that staking demand could support ETH, even while fee burning remains weak.
6. Latest Ethereum Price Analysis: November 7, 2026
Now let's connect the network news with the actual market.
At the time of this analysis, ETH is trading around the $2,240–$2,245 area.
The market recently experienced selling pressure, followed by a small recovery.
The latest price movement looks more like a recovery attempt than a confirmed bullish breakout.
Important price levels to watch:
- Support Zone 1: $2,200–$2,203
- Support Zone 2: Around $2,150
- Resistance Zone 1: $2,250–$2,252
- Resistance Zone 2: $2,300
- Stronger upside area: $2,350
These are technical observation levels, not guaranteed price targets.
Bullish Scenario 📈
If ETH holds above the $2,200 support area and buyers manage to push the price above $2,250 with strong trading volume, the next areas to watch could be $2,300 and $2,350.
A strong move above these levels could improve short-term market sentiment.
Bearish Scenario 📉
If ETH loses the $2,200 support area, selling pressure could increase.
In that situation, the next important level to watch would be around $2,150.
A weak recovery with low buying volume could also lead to another rejection near resistance.
What Should Traders Watch?
Three things deserve attention:
1. Whether ETH can hold above $2,200.
2. Whether buying volume increases during a move above $2,250.
3. Whether Ethereum's monthly supply growth starts slowing down.
These factors can help traders understand whether the market is building real strength or simply experiencing a temporary bounce.
7. My Final View: Is Ethereum Still Worth Watching?
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In my opinion, Ethereum's latest situation is not simply bullish or bearish.
There are two different stories happening at the same time.
On one side, transaction activity is growing, fees are becoming cheaper, Layer 2 networks are expanding, and staking participation is increasing.
On the other side, ETH burning has slowed down, supply is growing, and the network is not generating the same fee pressure that once helped reduce its supply.
For long-term investors, Ethereum's growing ecosystem remains an important strength.
But for ETH holders, supply growth is something that cannot be ignored.
I believe the next important question is whether Ethereum can turn its growing network activity into stronger demand for ETH itself.
More users are good for Ethereum. But more users alone do not guarantee a higher ETH price.
That is the real story traders should understand.
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YOUR TURN: WHAT DO YOU THINK? 👇
Can Ethereum reach a new bullish phase even with rising supply and lower transaction fees?
Or will the growing ETH supply create more pressure on its price?
Share your thoughts below. Let's discuss!
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Disclaimer: This article is for educational and informational purposes only. Cryptocurrency markets are highly volatile. Always do your own research before making trading decisions.
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Ethereum demora Glamsterdam por 8 alertas sobre la seguridad de sus contratos
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Los auditores buscan determinar si el cambio en las tarifas puede alterar instrucciones ejecutadas después de un error.
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Un cambio en las reglas de consumo de gas podría alterar el funcionamiento de contratos inteligentes que ya operan en Ethereum.
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La preocupación llevó a los desarrolladores a aplazar las pruebas de Glamsterdam en la red de pruebas Hoodi mientras investigan ocho posibles incompatibilidades y determinan si deben ajustar las aplicaciones existentes o modificar las especificaciones de la actualización.
El problema está relacionado con las propuestas EIP-8037 y EIP-8038, que cambiarían los costos de gas para crear nueva información y acceder a datos que ya están almacenados en la red.
Aunque estos ajustes buscan modificar la estructura de costos de la red, también podrían afectar contratos programados bajo las reglas actuales.
La principal preocupación aparece cuando un contrato realiza una llamada a otro y esta operación falla. Algunos programas utilizan el consumo de gas como una señal para detener determinadas acciones o registrar que ocurrió un error.
Sin embargo, con las nuevas reglas podría quedar más gas disponible después de una llamada fallida, lo que permitiría ejecutar instrucciones adicionales.
Esto significa que un contrato podría continuar con una operación que sus desarrolladores esperaban interrumpir o registrar un resultado diferente al previsto.
El impacto dependerá de cómo esté escrito cada programa, por lo que no significa que todos los contratos de Ethereum vayan a presentar fallos.
#ChainSecurity advirtió sobre este comportamiento en un análisis publicado el 13 de octubre.
A partir de estas observaciones, la Fundación Ethereum recopiló ocho supuestos técnicos que podrían dejar de cumplirse con los cambios propuestos.
Entre ellos figuran las previsiones sobre cuánto gas necesita una operación y qué sucede con los recursos disponibles cuando una llamada se revierte.
Para facilitar la revisión, la organización publicó un repositorio con ejemplos e instrucciones para que los desarrolladores identifiquen posibles problemas en sus contratos, documenten los hallazgos y propongan soluciones.
También pidió la colaboración de auditores independientes antes de las próximas discusiones de All Core Developers.
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