Ethereum Stays Efficient as Network Activity Surges

Ethereum transaction fees have dropped to historic lows even as daily transactions recently topped 1.6 million for the first time since early October.

According to Milkroad data, average fees now sit at just 0.16 gwei, or about $0.01 per basic transaction. Token swaps cost around $0.15, while NFT sales run about $0.27.

This marks a major shift from previous bull runs when high network activity typically caused fees to spike. The difference now comes from two major upgrades:

• Dencun
• Pectra

These updates have made the network more scalable and capable of handling more transactions without congestion.

The Pectra upgrade, deployed in May, doubled the capacity for layer-2 networks to process transactions. This cut layer-2 fees by roughly 50% and moved more activity off the main Ethereum network.

The earlier Dencun upgrade reduced layer-2 transaction costs by 95% within a year of its March 2024 launch.

Active addresses on the network peaked at nearly 696,000 on a recent Saturday, according to data from Nansen. This level of activity would have been impossible to sustain at reasonable costs just two years ago.

Why Low Fees on Ethereum Matter for Adoption

Cheaper transactions make Ethereum more practical for everyday use. When fees were high during previous market cycles, many users couldn’t afford to interact with decentralized apps or move tokens between wallets. Now, someone can swap tokens or buy an NFT for less than the cost of a cup of coffee.

This pricing structure opens doors for new use cases. Microtransactions become viable. Games can operate on-chain without bankrupting players. Small businesses can accept crypto payments without worrying about fees eating into their margins.

The data shows Ethereum currently hosts 75% of the tokenized real-world assets market, 65% of all DeFi total value locked, and 60% of stablecoin volume.

These numbers reflect growing institutional interest, particularly as the Ethereum Foundation launches new resources to help traditional businesses move on-chain.

1/ Now live: the Ethereum for Institutions site

Ethereum is the neutral, secure base layer where the world’s financial value is coming onchain

Today, we’re launching a new site for the builders, leaders, and institutions advancing this global movement pic.twitter.com/KGNKVaPda0

— Ethereum Foundation (@ethereumfndn) October 29, 2025

For traders and investors, stable low fees during high activity periods suggest the network can handle future growth without the pain points that limited adoption in past cycles.