Ethereum Transactions Surge to New Heights as Fees Hit Multi-Year Lows

Ethereum Transactions Hit Record High as Fees Fall to Multi-Year Lows

Ethereum is now processing the highest transaction volumes in its history, accompanied by some of the lowest fees seen in recent years.

Key Takeaways:

Ethereum experiences record transaction activity while gas fees have reached their lowest levels.
Recent upgrades to the protocol and increased usage of layer-2 solutions have boosted capacity and reduced pressure on mainnet fees.
The rise in stablecoin transactions and increased staking participation indicates renewed confidence in Ethereum.

Recent data reveals that the seven-day moving average of transactions on Ethereum is nearing 2.5 million, nearly double the numbers from a year ago.

Since mid-December, transaction activity has consistently increased, reversing a gradual slowdown that persisted through much of the latter half of 2025.

Ethereum Gas Fees Reach Record Lows

Simultaneously, the cost of transactions has decreased significantly. Average gas fees are currently around $0.15, marking the lowest level in the modern history of Ethereum.

Data from Etherscan shows that some common actions, like token swaps, have recently dropped to as low as $0.04.

This combination of record transaction volume and minimal fees contrasts sharply with previous cycles, where congestion often pushed costs beyond the reach of smaller users.

This positive shift follows a series of critical technical upgrades. The Fusaka hard fork, activated seven weeks ago, introduced Peer Data Availability Sampling and established a twice-yearly upgrade schedule.

An update in January adjusted blob parameters, enhancing capacity and lowering data costs for layer-2 rollups. Collectively, these changes have significantly improved the efficiency of the Ethereum ecosystem.

Fee pressures have alleviated further due to shifts in the usage dynamics of Ethereum. In late November, the block gas limit was raised from 45 million to 60 million, increasing execution capacity.

Additionally, a growing segment of transactions has shifted to layer-2 networks, resulting in reduced demand for mainnet block space, even as overall transaction counts continue to rise.

Stablecoins have been a significant factor in this surge. Analysts at Standard Chartered estimate that stablecoin transfers now represent about 35% to 40% of all Ethereum transactions.

Geoffrey Kendrick, the global head of digital asset research at the bank, sees 2026 as a crucial year for Ethereum, highlighting its role as the primary settlement layer for on-chain dollars.

Renewed Confidence through Staking

Current trends in staking indicate greater confidence in Ethereum. More than 36 million ETH is locked in staking contracts, making up approximately 30% of the circulating supply, based on ValidatorQueue data.

The entry queue for staking has risen to levels not witnessed since mid-2023, while demand for exits has nearly disappeared.

Buterin Envisions a New Era of User Autonomy

Ethereum co-founder Vitalik Buterin has articulated the current moment as more than just a technical achievement.

In a recent post, he indicated that the community is transitioning into a phase aimed at restoring user autonomy and enhancing user experience. He expressed that the earlier compromises made for the sake of adoption no longer need to dictate the network's future.

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

Overall, the combination of record activity, decreasing fees, and rising participation points to Ethereum entering a transformative new phase—one where scalability does not compromise accessibility.