The decline in Ethereum's average daily gas fees doesn't necessarily signal a drop in activity. Gas fees are tied to network demand—lower fees often reflect reduced congestion, not inactivity. Recent trends suggest users are shifting to Layer 2 solutions like Arbitrum or Base, which handle transactions more cheaply and efficiently, especially post-Dencun upgrade. Ethereum's mainnet transaction count remains high, indicating sustained usage. However, fewer active addresses could hint at a slowdown in new user engagement or DeFi activity. It’s a mixed picture: scaling improvements are working, but broader market sentiment and adoption rates also play a role. More data is needed to confirm if activity is truly declining.