Bitcoin and Ethereum Network Fees Plummet 90% Year-Over-Year

Transaction costs on both Bitcoin and Ethereum networks have seen a dramatic decline, dropping approximately 90% compared to April 2024 levels. This substantial fee reduction comes amid improved network scalability solutions and decreased congestion across both blockchain ecosystems. For Bitcoin, the implementation of Taproot upgrades and increased adoption of layer-2 solutions like the Lightning Network have contributed to lower on-chain fees. Meanwhile, Ethereum’s transition to a more efficient proof-of-stake consensus mechanism, combined with ongoing layer-2 rollup adoption, has significantly reduced gas fees. Market analysts suggest this fee reduction could enhance mainstream adoption as cryptocurrency transactions become more cost-effective for everyday use.

In Brief

• Transaction fees on Bitcoin and Ethereum have dropped by more than 90% compared to 2024.
• The average cost on Bitcoin has fallen from 16.16 dollars to 0.91 dollars, with fast transactions at only 0.35 dollars.
• The gas price on Ethereum is now below 1 gwei, with average fees of 0.31 dollars.
• Swaps, NFT sales, or the use of bridges now cost just a few cents.
• A spectacular drop in fees that promotes crypto adoption and makes blockchains more accessible.

Bitcoin and Ethereum Fees Reach Their Lowest Level in a Year

In April 2024, performing a transaction on Bitcoin cost an average of 16.16 dollars. Today, fees have dropped to just 0.913 dollars per transaction, or 5.1 satoshis per virtual byte. According to mempool.space, a simple accelerated payment in BTC now costs only about 0.35 dollars, while the mempool queue has dropped from 248,000 to just 21,118 transactions.

On the Ethereum network, the trend is even more pronounced. The average cost of a transaction has dropped from 4.03 dollars to 0.31 dollars, a decrease of 92.36%. The gas price is now below 1 gwei, with priority transactions around 0.406 gwei—less than a cent. For a simple ETH transfer, confirmation takes barely 30 seconds.

Fees remain modest for more complex operations: 0.22 dollars for token swaps, 0.37 dollars for NFT sales, and only 0.07 dollars to use a bridge. By comparison, in April 2024, these operations cost 20.73 dollars and 35.03 dollars respectively.

A Calm Period Favorable to Adoption

This spectacular drop in fees on Bitcoin and Ethereum could encourage a new wave of adoption, especially among mainstream users and developers. Less congestion, reduced costs, and fast confirmations: L1 blockchains once again offer a smooth user experience, paving the way for a renewed intensification of on-chain activity.

The drop in Bitcoin and Ethereum fees thus marks a favorable turning point for crypto users. By making transactions more accessible, this dynamic could revive activity on blockchains, encourage massive adoption of BTC and ETH, and stimulate innovation in decentralized finance. A wind of Optimism is blowing through the crypto ecosystem.

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