Ethereum Gas fees drop back to 2017 levels, but transaction volume hits a new all-time high, showcasing the results of ETH scalability improvements

January 27 News, the Ethereum network is experiencing a rare structural change: while usage continues to surge, transaction fees have dropped to the lowest levels in nearly nine years. According to Glassnode data, the current average transaction fee on Ethereum is below $0.01, a low unseen since May 2017, yet network activity remains high.

Data shows that on January 16, the number of daily transactions on Ethereum approached 2.9 million, nearly breaking the record. In the past, under similar load, Gas fees often soared to the $20 to $50 range, and even higher during NFT booms and meme coin cycles. But in early 2026, this “high frequency, low fee” state has become a reality, with ordinary transfers often completing for just a fraction of a cent.

This shift is backed by the gradual realization of Ethereum’s scalability roadmap. Previously launched EIP-4844 and a series of protocol optimizations have significantly reduced data publication costs and increased block utilization. Meanwhile, many transactions have migrated to Layer-2 networks such as Arbitrum, Optimism, and Base, which process transactions efficiently off-chain before settling collectively on the mainnet, alleviating congestion on Ethereum.

For users, this means a substantial improvement in the usability of the Ethereum blockchain. Costs for small transfers, stablecoin payments, DeFi operations, and NFT minting have all decreased. Ordinary users and developers who were previously deterred by high Gas fees can now participate more easily in the ecosystem. This change is especially critical for Web3 applications, on-chain games, and payment scenarios.

However, low fees also introduce new balancing issues. The decrease in Gas fees means less ETH is burned, potentially weakening the network’s deflationary effect, and at certain stages, even increasing supply. But many analysts believe that an ecosystem with more users and higher transaction frequency is more valuable in the long term than relying on high fees to maintain scarcity.

Currently, Ethereum is demonstrating a new operational state: achieving high throughput and low costs without sacrificing security and decentralization. If this trend continues, ETH in 2026 is expected to attract a larger base of real users, laying a more solid foundation for its position in crypto finance and real-world payments.