Ethereum’s network is handling a surge in activity while its transaction fees, known as gas, remain near all-time lows. This signals a significant shift toward a more scalable infrastructure, a stark contrast to previous market cycles when high demand often led to prohibitive costs.

Recent data shows that standard Ethereum transaction fees are hovering around just $0.01. Even more complex operations like token swaps and non-fungible token (NFT) sales are costing only about $0.15 and $0.27, respectively. This affordability persists even as the network experiences a notable uptick in usage.

Network Transactions Climb as Costs Remain Stable

Daily transactions on the Ethereum blockchain recently rose to 1.6 million, a peak not seen since early October. In a related trend, the number of active addresses on the network also reached a monthly high of 695,872, according to data from crypto intelligence platform Nansen.

Key Upgrades Drive Network Efficiency

The network’s ability to maintain low fees is largely credited to two major technical upgrades: Dencun and Pectra. Both were designed to lower transaction costs and increase throughput by enhancing the performance of layer-2 (L2) scaling solutions.

The Pectra upgrade, which was deployed in May, effectively doubled the data capacity for L2 networks, leading to a roughly 50% reduction in their transaction fees. This enhancement helps offload more activity from the main Ethereum network, further reducing congestion and costs.

Similarly, the Dencun upgrade, implemented on March 13, 2024, has been instrumental in cutting L2 transaction fees. One year after its deployment, average Ethereum transaction fees were reported to be 95% cheaper, demonstrating the long-term impact of these strategic improvements.