TLDR Tech / Crypto
Ethereum Priority Fees Will Not Rise – And That Is Good for ETH
Priority fees on Ethereum have held flat at $500-600M per year for four years despite rising activity, and the trend points toward further decline as wallets, DEXs, and lending markets capture MEV that once leaked to validators. Metamask and Rabby run backrunning auctions on user orderflow, Angstrom sells the first arbitrage right on DEXs, and Chainlink SVR paired with Aave claims liquidation value before conflicts reach the block. ETH's revenue bull case rests on base fees: 1M transactions per second at $0.001 each produces a $315B annual run rate, with no structural ceiling. Tighter DeFi spreads from this internalization make on-chain markets more competitive against centralized venues, while priority fees become immaterial to staking issuance debates.
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