Higher activity, lower fees: Here’s what December’s onchain data shows

On-chain data from December reveals that while fee revenues are declining, activity remains high on platforms like Ethereum, Polygon, Arbitrum, and Avalanche. The increase in transaction counts and active addresses, particularly on Ethereum, are notable indicators. The reduction in fees suggests reduced trading costs for investors and may enhance liquidity in the digital asset space. Furthermore, the declining fees could encourage new users to engage in a fiercely competitive blockchain market. However, the implications of lower fees might raise concerns regarding long-term profitability, indicating a need for cautious optimism.