Although blockchain activity on Ethereum continues to rise, gas fees on the leading smart contract network remain at historically low levels, indicating a more developed and scalable infrastructure suitable for complex real-world applications.
Ethereum transaction fees have stabilized at a record low of just 0.16 gwei, approximately $0.01 per transaction. Fees for token swaps were slightly elevated at $0.15, while non-fungible token (NFT) sales saw fees at $0.27, based on data from blockchain aggregator Milkroad.
These low costs sharply contrast with earlier periods of intense network activity, where demand frequently drove fees upwards, a significant criticism of Ethereum during past cycles.
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Increase in Ethereum activity with stable fees
Daily transactions on the network surged to 1.6 million on Tuesday, reaching a near one-month high not seen since early October prior to the $19 billion liquidation event.
Active addresses also increased, peaking at a monthly high of 695,872 on Saturday, according to the crypto intelligence platform Nansen.
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The historically low gas fees on Ethereum follow the Dencun and Pectra upgrades, both aimed at reducing transaction costs and increasing throughput.
Launched in May, the Pectra upgrade has doubled the blob capacity of layer-2 (L2) networks, leading to a 50% reduction in transaction fees on L2s. This upgrade also helped shift more transactions from the mainnet, further decreasing costs.
Ethereum’s earlier significant upgrade, Dencun, successfully reduced L2 transaction fees and shifted more transactions from L1, resulting in a 95% reduction in average Ethereum transaction fees a year after its deployment on March 13, 2024, as reported by Cointelegraph.
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