Ethereum transaction fees hit a new low! Averaging under $0.10, L2 scaling enters the ultra-low fee era

Ethereum transaction fees drop to about $0.09, with Dencun and EIP-4844 driving the widespread adoption of Layer 2 solutions, entering a new phase of low costs and high throughput. However, ETH burn rates are also decreasing in tandem.

By early 2026, Ethereum network transaction fees have reached a historic low. Multiple on-chain data platforms show that the current average transaction fee is only about $0.09 to $0.097, with some real-time data even as low as 0.000047 ETH, nearly zero cost. This change occurs amid continued record-high network activity. Analysts point out that the Dencun upgrade launched in 2024 and EIP-4844 (proto-danksharding) are key drivers, significantly reducing Layer-2 network costs and officially ushering Ethereum into a “low-cost, high-throughput” new era.

Ethereum transaction fees hit historic lows

According to data from YCharts, BitInfoCharts, and Etherscan, as of early March 2026, the average transaction fee on Ethereum is approximately $0.09–$0.097.

At certain times, the daily average fee even drops below $0.01, with some real-time block data showing fees nearly at $0. In ETH terms, some transactions cost only about 0.000047 ETH.

This is a stark contrast to the past.

• Late 2021: Average transaction fee exceeded $1.50
• 2022: During extreme network congestion, single transaction fees even surpassed $200

Today’s fee levels demonstrate that Ethereum has achieved significant scalability breakthroughs.

Dencun upgrade changes Ethereum’s fee structure

Analysts indicate that the core reason for the sharp fee reduction is the Dencun upgrade launched in March 2024.

This upgrade introduces the “blob” data mechanism via EIP-4844 (proto-danksharding), allowing Layer-2 networks to access data at lower costs. As a result, a large portion of transaction activity has shifted to the Layer-2 ecosystem.

The main beneficiaries of this include: Optimism, Arbitrum, and Base. On these rollup networks, most daily transactions can be completed at near-zero costs.

As transactions gradually move to Layer-2, Ethereum Layer-1 primarily functions as: the final settlement layer, staking and validator operations, high-value transfers, and core DeFi settlements.

This structure is also viewed as part of Ethereum’s long-term “modular blockchain” architecture.

Fees decrease, but on-chain activity reaches new heights

Notably, the reduction in fees has not dampened network activity—in fact, usage has grown rapidly.

Multiple market reports in January 2026 show that Ethereum’s daily transaction count has surpassed 2.5 to 2.9 million, setting new records.

This growth is mainly driven by several factors: a resurgence in DeFi activity, increased wallet users, widespread Layer-2 applications, emerging Web3 use cases, and micro-payment scenarios.

In terms of performance, Ethereum’s confirmation speed remains highly efficient. Most transactions are confirmed within about 30 seconds, with gas prices often below 0.05 Gwei.

This means Ethereum has finally achieved its long-term promise of scalability while maintaining security and decentralization.

ETH burn rate declines, posing new challenges for the economic model

However, the lower fees also bring another significant impact: a substantial reduction in ETH burns.

Under the EIP-1559 mechanism, high transaction fees on the main chain were burned, creating a “deflationary” supply effect and fueling the “ultrasound money” narrative.

But with Layer-2 becoming the primary transaction venue, most fees are absorbed by the Layer-2 ecosystem rather than being burned on the main network.

Data from Token Terminal shows:

• Protocol fee revenue over the past 30 days is only about $11.8 million

Compared to previous peaks in recent years, this figure has declined noticeably.

As a result, the market is beginning to question whether the ETH value capture model needs reevaluation if low fees persist long-term.

Ethereum enters a “low-cost, high-throughput” new era

Despite ongoing adjustments to the economic model, many community observers believe that the overall impact of these changes on Ethereum’s ecosystem is positive.

Ultra-low fees mean more application scenarios become feasible, such as: cross-border micro-remittances, micro-payments, Web3 social platforms, gaming and NFT trading, large-scale user applications.

In other words, Ethereum has finally realized its long-standing goal: significantly enhancing scalability without sacrificing decentralization and security.

Meanwhile, developers are discussing future upgrades beyond 2026, including: increasing gas limits, further optimizing rollup costs, and continuing to advance danksharding technology.

As these improvements are gradually implemented, Ethereum appears to have officially entered a new era of low fees and high throughput. This also helps it regain an advantage in the fast-growing blockchain space while maintaining its position as the world’s largest smart contract settlement layer.

• This article is reprinted with permission from: 《Chain News》
• Original title: 《Ethereum Fees Drop to Historic Low! Average Under $0.1, L2 Scaling Enters “Ultra-Low Fee Era”》
• Original author: Elponcho