For years, Ethereum has faced criticism over high gas fees and slow transaction speeds. Many users turned to alternative blockchains because sending even a small transaction could cost several dollars, making Ethereum nearly unusable for everyday activity.
That narrative is changing. Recent data from Nansen, a leading blockchain analytics firm, shows Ethereum is now processing over 1.6 million daily transactions, with average gas fees dropping to around $0.01 , the lowest in years.
The change follows the implementation of key upgrades, including Dencun (March 2024) and Pectra (May 2025). These upgrades improved how data is stored and processed on the blockchain. They also enhanced how layer-2 networks like Arbitrum, Optimism, and Base interact with Ethereum, reducing congestion and cutting transaction costs significantly.
According to Nansen’s report, transaction volume has climbed steadily since these upgrades. User activity across DeFi, gaming, and NFT applications is increasing again, reflecting renewed trust in Ethereum’s scalability. The number of active addresses recently surpassed 690,000, showing that more people are returning to the network.
Blockchain analyst Martin Lee from Nansen explained that this is one of Ethereum’s most stable periods in years.
“Transaction fees below one cent were nearly impossible to imagine before,” he said. “We’re now seeing Ethereum operate efficiently without sacrificing security or decentralization.”
The improvement also highlights the growing maturity of Ethereum’s ecosystem. Developers say that cheaper gas means more experimentation, especially for decentralized applications that previously avoided mainnet deployment due to cost.
Still, experts caution that while gas fees are low now, sustained performance will depend on continued upgrades and wider layer-2 adoption. If usage spikes sharply, costs could rise again.
For now, though, Ethereum appears to be achieving what it has promised for years ,faster, cheaper, and smoother blockchain transactions, giving users a glimpse of what a truly scalable Ethereum network looks like.
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