Ethereum’s layer-1 network has reached a major milestone, recording 2.2 million transactions in a single day, while average transaction fees have fallen to just $0.17. This combination of high usage and low costs marks a sharp contrast to previous years and highlights how far the network has come in terms of scalability and efficiency.
Ethereum Transaction Growth and Falling Fees
According to data from Etherscan, the Ethereum mainnet set a new daily transaction record this week. What makes this especially notable is that it happened during a period of historically low fees.
Back in May 2022, Ethereum transactions were at their most expensive, with average fees exceeding $200 per transaction during peak network congestion. Since then, fees have steadily declined. Even as recently as October 10, average fees were around $8.48, driven by a major market-wide liquidation event.
Today’s much lower fees suggest that Ethereum upgrades are successfully handling increased demand. Historically, high fees pushed users toward cheaper alternatives such as layer-2 networks. The recent surge in layer-1 activity, however, signals renewed confidence in Ethereum’s mainnet and growing usage directly on L1.
Developer activity also supports this trend. Data from Token Terminal shows that the number of new smart contracts deployed on Ethereum reached 8.7 million in Q4, indicating that builders continue to choose Ethereum as a primary settlement and execution layer.
2025 Ethereum Upgrades Driving Scalability and Confidence
Two major Ethereum upgrades in 2025 have likely played a key role in both the transaction spike and the reduction in fees.
The Pectra upgrade, rolled out in May, focused on validator improvements, greater staking flexibility, and laying the groundwork for future scalability enhancements. These changes strengthened the network’s core infrastructure and improved overall efficiency.
Meanwhile, the Fusaka upgrade significantly increased Ethereum’s gas limit from 45 million to 60 million, allowing more transactions to be processed in each block. Earlier in the year, more than 50% of Ethereum validators signaled support for raising the gas limit, reflecting strong consensus around scaling the network.
At the same time, Ethereum’s staking data points to growing confidence among validators. The staking queue recently flipped, with nearly twice as much ETH waiting to be staked compared to ETH queued for withdrawal. Since unstaking is often associated with plans to sell, and staking reflects long-term commitment, this shift suggests increasing trust in Ethereum’s future.
