Despite a surge in blockchain activity on Ethereum, gas fees on the world’s largest smart contract network are consistently near historic lows. This trend suggests a more mature and scalable infrastructure that is well-prepared for advanced real-world use cases.
Ethereum transaction fees have remained exceptionally low, averaging just 0.16 gwei, which equates to approximately $0.01 per transaction. For token swaps, fees were slightly higher at $0.15, and for non-fungible token (NFT) sales, they reached $0.27, according to data from the blockchain analytics platform Milkroad.
These low costs stand in stark contrast to previous periods of high network demand, when fees would often escalate dramatically, representing one of Ethereum's most significant criticisms in earlier cycles.
Ethereum Activity Rises Amid Stable Fees
Daily transactions on the Ethereum network saw an increase, reaching 1.6 million on Tuesday. This figure marks a near one-month high, last observed at the beginning of October prior to a significant market event involving a record $19 billion liquidation.
The number of active addresses on the network also rose to similar levels, peaking at a monthly high of 695,872 on Saturday, as reported by the crypto intelligence platform Nansen.
Ethereum’s historically low gas fees are a direct result of recent network upgrades, specifically the Dencun and Pectra upgrades, which were designed to reduce transaction costs and enhance throughput.
The Pectra upgrade, implemented in May, has effectively doubled the blob capacity for layer-2 (L2) networks. This enhancement has led to an approximate 50% reduction in transaction fees on L2s. Furthermore, this upgrade contributes to offloading more transactions from the mainnet, thereby further reducing costs.
Ethereum's preceding major upgrade, Dencun, has also been instrumental in decreasing L2 transaction fees and offloading transactions from the L1. A year after its deployment on March 13, 2024, average Ethereum transaction fees experienced a 95% drop, as previously reported.