Ethereum Shatters Transaction Records While Fees Plunge to Multi-Year Lows

Ethereum's network just hit a new peak in daily transactions—a record high that coincides with transaction fees dropping to levels not seen in years. The dual surge in activity and plunge in costs signals a major shift in the network's economics.

The Fee Free-Fall

Gas fees, the cost of doing business on-chain, have collapsed. Users are now executing swaps, minting NFTs, and deploying smart contracts for a fraction of what they paid during the last bull market frenzy. This isn't a minor dip; it's a structural change making the network accessible again for everyday use.

Record Activity in a Cheap Era

The surge in transactions proves demand was merely suppressed by cost, not absent. Developers are deploying, traders are arbitraging, and new protocols are launching—all fueled by affordable block space. It turns out people love blockchain when it doesn't cost an arm and a leg to use it.

The Scalability Payoff

Years of upgrades are finally bearing fruit. Layer 2 rollups are absorbing volume, and base-layer optimizations are increasing efficiency. The network is handling more while charging less—a feat that would make any traditional fintech platform envious, if they understood how it worked.

This combo of record usage and rock-bottom fees creates a powerful flywheel. Lower costs attract more users, which increases utility and value, while proving the long-term scalability roadmap is more than just whitepaper promises. It's a direct challenge to the old finance mantra that you can only have two: fast, cheap, or secure. Ethereum's building all three—and the activity spike shows the market is taking notice. Just don't tell the Wall Street analysts who still think a 'gas fee' is something you pay at the pump.

Ethereum Gas Fees Fall to Lowest Levels in the Network’s Modern History

At the same time, transaction costs have dropped sharply. Average gas fees are hovering around $0.15, marking the lowest level in Ethereum’s modern history.

Estimates from Etherscan suggest some common actions, such as token swaps, have recently cost as little as $0.04.

The pairing of record throughput and minimal fees stands in contrast to earlier cycles, when congestion routinely pushed costs beyond the reach of smaller users.

The change follows a series of technical upgrades. Ethereum’s Fusaka hard fork, activated seven weeks ago, introduced Peer Data Availability Sampling and formalized a twice-yearly upgrade cadence.

A subsequent update in January adjusted blob parameters, increasing capacity and lowering data costs for layer-2 rollups. Together, these changes have improved efficiency across the ecosystem.

Fee pressure has also eased due to shifts in how Ethereum is used. The block gas limit was raised from 45 million to 60 million in late November, expanding execution capacity.

ETH has 10x more TVL and 14x more stablecoin supply than Solana.

SOL has 3x more active addresses and 110x more daily transactions than Ethereum.

ETH is the home of DeFi and the global settlement LAYER for secure, high-value activity. The institutional chain.

SOL is the home… pic.twitter.com/cHC1KWhb2s

Meanwhile, a growing share of activity has migrated to layer-2 networks, reducing demand for mainnet blockspace even as total transaction counts rise.

Stablecoins are a major driver of the surge. Analysts at Standard Chartered recently estimated that stablecoin transfers now make up roughly 35% to 40% of all Ethereum transactions.

Geoffrey Kendrick, the bank’s global head of digital asset research, has described 2026 as a pivotal year for Ethereum, pointing to its role as the primary settlement layer for onchain dollars.

Staking trends reinforce the picture of renewed confidence. More than 36 million ETH is currently locked in staking contracts, accounting for about 30% of the circulating supply, according to ValidatorQueue data.

The entry queue has climbed to levels not seen since mid-2023, while exit demand has nearly vanished.

Buterin Says Ethereum Is Entering a New Phase Focused on User Autonomy

Ethereum co-founder Vitalik Buterin has framed the moment as more than a technical milestone.

In a recent post, he said the community is entering a phase focused on restoring personal autonomy and improving user experience, arguing that earlier compromises made in pursuit of adoption no longer need to define the network’s future.

“2026 is the year that we take back lost ground in terms of self-sovereignty and trustlessness,” Buterin said in an X post.

Together, record activity, falling fees, and rising participation suggest Ethereum is entering a new phase, one where scale no longer comes at the expense of accessibility.