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    Ethereum Network Sees Spike in Activity as Transaction Costs Drop to 17 Cents

    Ethan CarterBy No Comments2 Mins Read
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    This week, the Ethereum mainnet achieved a new record with 2.2 million transactions in a single day, while average fees have dropped to just 17 cents.

    The layer-1 blockchain hit this new transaction milestone on Tuesday, according to block explorer Etherscan. Transaction fees have seen a significant decline over time.

    The peak transaction fees on Ethereum were noted in May 2022, where users had to pay over $200 for each transaction.

    Nonetheless, ongoing upgrades have markedly reduced fees, even as network usage continues to grow.

    Since October 10, when fees were approximately $8.48 amid a major liquidation event that affected the whole market, fees have been on a downward trend.

    Cryptocurrencies, Ethereum, Transactions, Fees
    Ethereum transaction fees have dropped considerably over time. Source: Etherscan

    Historically, high Ethereum fees have pushed users to more affordable alternatives like layer 2 solutions, but the increasing transactions on the mainnet suggest a shift back to the layer 1 blockchain and a rise in crypto user engagement.

    Additionally, developers are increasingly opting for Ethereum as a settlement layer, with data from Token Terminal indicating that the number of new smart contracts created and published on the Ethereum blockchain hit a peak of 8.7 million in the fourth quarter.

    Two major upgrades for Ethereum in 2025

    The Ethereum blockchain experienced major transformations in 2025, featuring two upgrades that likely influenced the surge in transactions and the reduction in fees.

    Related: BitMine secures $98M in ETH as year-end selling caps gains: Tom Lee

    Pectra in May focused on enhancing validator operations, offering staking flexibility, and preparing Ethereum for future scalability advancements.

    Fusaka raised the gas limit from 45 million to 60 million and was also aimed at significantly enhancing scalability, data management, and network performance. In February, over 50% of Ethereum validators expressed support for increasing the network’s gas limit, thereby raising the maximum gas allocated for transactions within a single Ethereum block.