Ethereum Fees Remain Low Despite Increased Activity
Despite growing blockchain activity on Ethereum, gas fees on the world’s largest smart contract network remain near historic lows, indicating a more mature and scalable infrastructure ready for advanced real-world use cases. This trend is a significant departure from previous periods of high network activity, where demand often drove up fees, which has been one of Ethereum’s biggest criticisms in past cycles.
Ethereum transaction fees remained at an all-time low of just 0.16 Gwei, or about $0.01 per transaction. According to blockchain data aggregator Milkroad, gas fees were slightly higher for token swaps at $0.15 and for non-fungible token (NFT) sales at $0.27. These low costs are a testament to the network’s increasing efficiency and scalability.
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Ethereum Activity on the Rise
Daily transactions on the network rose to 1.6 million on Tuesday, nearly hitting a monthly high last seen in early October before the record $19 billion liquidation. This increase in activity is a positive sign for the network, indicating growing adoption and usage.
According to crypto intelligence platform Nansen, active addresses also rose to similar levels, reaching a monthly high of 695,872 on Saturday. This growth in active addresses suggests that more users are engaging with the network, which could lead to increased demand for Ethereum-based applications and services.
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Upgrades Drive Efficiency
Ethereum’s historically low gas fees follow Dencun and Pectra’s upgrades, both aimed at reducing transaction costs and increasing throughput. The Pectra upgrade, introduced in May, has doubled the blob capacity of Layer 2 (L2) networks and reduced transaction fees on L2s by approximately 50%. This upgrade also served to offload more transactions from the mainnet, further reducing costs.
Ethereum’s previous major upgrade, Dencun, also managed to reduce L2 transaction fees and shift more transactions from L1, making average Ethereum transaction fees 95% cheaper a year after its launch on March 13, 2024, Cointelegraph reported. These upgrades have significantly improved the network’s efficiency and scalability, making it more attractive to users and developers.
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