Ethereum Transaction Fees Drop to Record Low Since February 2020

The value is at a historic low since February 2020. But activity on the blockchain remains at 1.2 million daily transactions. Transaction fees on the Ethereum blockchain have reached their lowest levels in years, with the seven-day moving average (7DMA) indicating transaction fees of less than $500,000 per day - contrasted with a peak of $30 million in March 2024. At the same time, the number of daily transactions remains stable at about 1.2 million per day, which characterizes not a decrease in demand but a change in network economics, the media noted. The decline in fees has been influenced by a number of upgrades, including the introduction of EIP-4844, which added BLOB (big data) transactions, a cheaper way to store data for L2 solutions. Among other things, Base blockchain has become a popular choice among users due to its significant cheapening while maintaining Ethereum's security. According to Glassnode, total transaction fees were 317.1 ETH as of April 6, 2025. The previous low value was recorded on February 22, 2020 - 306.2 ETH. For users, lower commissions mean increased availability, which opens up opportunities for small DeFi transactions and daily transfers. For validators, however, it reduces motivation - the blockchain increasingly relies on Ethereum issuance instead of fee income, the publication noted. Record lows in the Ethereum ecosystem are also seen in the amount of assets burned due to transaction fees, a decrease in the number of new addresses on the blockchain and decreases in the available supply of Ethereum on centralized exchanges. However, on May 7, 2025, the blockchain will undergo a Pectra update, which aims to improve the user experience and efficiency of Ethereum.