Record Transaction Activity and Unprecedentedly Low Gas Fees
Ethereum has achieved a significant milestone, with its seven-day average transaction count reaching a record high even as average Gas fees have fallen to their lowest point in modern history. This development is attributed to recent protocol upgrades, increased block Gas limits, and the continued migration of execution activity to Layer 2 networks. These factors have collectively reduced mainnet congestion and lowered user costs substantially.
The network is now demonstrating its growing role as a settlement and infrastructure layer, rather than a bottleneck for high-cost transactions. Evidence of this shift is seen in the all-time highs reached by both stablecoin transfers and staking activity.
Surging Transaction Volume and Record-Low Average Gas
Data indicates that Ethereum's seven-day moving average transaction count has approached 2.5 million, setting a new historical high and nearly doubling compared to the same period last year. This surge in transaction activity, which began to rebound noticeably in mid-December, reverses a gradual downward trend observed since mid-2025.
Concurrently, average Gas fees have plummeted to extremely low levels. According to available data, the average Gas cost per transaction is around $0.15, representing the lowest point in Ethereum's recent history. Further analysis of Gas data suggests that the estimated fee for a single swap on a recent Sunday fell as low as approximately $0.04.
This unique combination of record-high transaction activity and extremely low costs signifies a critical turning point for the Ethereum network. For years, the network faced criticism for its high and volatile fees, particularly during periods of congestion, which often excluded users conducting small-value transactions.
Protocol Upgrades and the Layer 2 Migration Effect
The significant increase in transaction volume occurred approximately seven weeks after the activation of Ethereum's Fusaka hard fork. This upgrade introduced PeerDAS (peer-to-peer data availability sampling) and formally established Ethereum's schedule of twice-yearly upgrades.
More recently, a network upgrade deployed on January 8 focused on adjusting Blob parameters. This upgrade increased the Blob target to 14 and the maximum to 21, resulting in a substantial reduction in data costs for Layer 2 rollups.
The sharp decrease in mainnet Gas fees is also closely linked to another ongoing trend: the migration of execution-layer activity towards Layer 2 networks. This shift has cooled demand for mainnet block space, even as overall transaction activity escalates. The increase in Ethereum's block Gas limit from 45 million to 60 million in late November, nearly doubling its capacity compared to early 2025, further contributes to this trend.
Stablecoins and Staking Activity Both Reach Record Highs
The surge in transaction activity on the Ethereum network coincides with record-high stablecoin usage. Recent analysis suggests that stablecoin transfers now constitute approximately 35% to 40% of all Ethereum transactions. This trend has led to predictions that 2026 will be a pivotal year for Ethereum.
Furthermore, staking activity on the Ethereum network has also reached an all-time high. Data indicates that over 36 million ETH are currently locked in staking contracts, representing roughly 30% of the circulating supply. The staking entry queue has expanded to over 2.5 million ETH, the highest level recorded since August 2023, while the exit queue has diminished to near zero.