Ethereum price is approaching new highs, for the first time depegging from Mainnet transaction fees, with ecological scale replacing scarcity as the new narrative.

According to Wu, analyst @Mausefalle25 from 1kx reported that the ETH price is close to its ATH, but the Mainnet's fee revenue is flat compared to May of this year, when the ETH price was over 50% lower than it is now. Ethereum significantly reduced L1 costs after experiencing two major upgrades, Dencun and Pectra, leading to a drop in fee revenue from over $100 million per week to low single-digit millions; the price has decoupled from fee revenue for the first time; the premium on L1 is related to Settlement dominance, rather than expensive Block space. Ethereum is pursuing ecosystem scale and Rollup adoption to replace the narrative of 'scarcity', marking a turning point that demonstrates a chain can rise without high L1 revenue, which also warns those who equate high fees with high Token prices as a general rule.