Ethereum L1 Fees Fall To Near All-Time Lows As Network Activity Surges

Ethereum is entering an unexpected new phase as transaction fees on its Layer-1 network fall to some of the lowest levels ever recorded.

For years, users criticized Ethereum’s high gas fees, especially during the DeFi Summer of 2020, when network congestion pushed transaction costs to unprecedented heights, forcing retail and institutional participants toward cheaper Layer-2 solutions.

Now, the tides appear to be shifting. Several analysts note that Ethereum L1 gas fees are hovering near all-time lows, prompting both long-time users and returning participants to reconsider transacting directly on the main chain. Some traders even say that this is the first time since 2020 that they feel confident using Ethereum L1 consistently and without hesitation.

Token Terminal highlighted the ongoing fee environment in a recent update, pointing out that the sudden drop is reshaping user behavior and encouraging a renewed wave of mainnet activity.

Ethereum L1 hits record transactions at record-low fees

As the cost difference between L1 & L2 narrows, apps that benefit from Ethereum’s liquidity, composability, & security are reassessing mainnet deployment.

E.g. Aerodrome has announced an intent to expand to Ethereum L1. pic.twitter.com/FprCYPZtDf

— Token Terminal