Ethereum transaction fees hit all-time lows as activity surges
Ethereum transaction fees have reached all-time lows while transaction activity has surged to record levels. The Dencun upgrade introduced a more efficient way for Layer 2 networks to operate, significantly reducing costs for users. However, this shift has resulted in lower fee revenue for Ethereum L1, raising concerns about its deflationary model.
- ▪Ethereum's Layer 1 network processed a record 1.87 million daily transactions on December 31, 2025.
- ▪Average transaction fees have dropped to around $0.21, marking a decline of over 50% year-over-year.
- ▪The Dencun upgrade in March 2024 allowed Layer 2 rollups to post data more cheaply, alleviating congestion on the main chain.
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Ethereum transaction fees hit all-time lows as activity surges Record-breaking transaction volumes and rock-bottom fees paint a paradox that reshapes Ethereum's economic model. Share Add us on Google by Editorial Team May. 23, 2026 window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "01f21ccf-2092-46b1-9ac7-8c44cc782e0f"; sevioads_preferences[0].adType = "native"; sevioads_preferences[0].inventoryId = "c5700508-581b-472c-8fdd-a931cdbfc8e1"; sevioads_preferences[0].accountId = "1e47efc1-ec2d-4fca-a8b9-354e249e5095"; sevioads.push(sevioads_preferences); Ethereum’s Layer 1 network processed more transactions than ever while charging users almost nothing for the privilege.
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