Ethereum users are paying less than ever to send transactions as network upgrades push transaction fees to their lowest levels since May 2017, while daily activity on the blockchain continues to climb.
The reduced cost follows recent protocol changes, especially the December 2025 Fusaka hard fork, which increased the block gas limit and expanded block capacity. Despite the drop in Ethereum fees, the network handled nearly 2.9 million transactions on January 16, setting a new activity record.
Ethereum fees have reached new lows even as usage on the network remains strong. On January 16, the blockchain processed nearly 2.9 million transactions, a new peak. Still, the average cost per transaction stayed below $0.0002.
This drop in cost follows a protocol upgrade that tripled the block gas limit. Known as the Fusaka hard fork, it launched in December 2025. It improved Ethereum’s throughput without reducing the price of ETH.
The current 7-day moving average shows the lowest transaction fee levels since May 2017. Glassnode reported a “steady compression in the fee band,” replacing earlier congestion spikes. This indicates reduced demand for high-fee block space.
$ETH Transaction Fees are now at their LOWEST since 2017
What followed was a HUGE move to the upside.
pic.twitter.com/xJonRsNYsg
— Crypto Crib (@Crypto_Crib_) January 27, 2026
Ethereum’s price remains relatively high compared to earlier years. However, fee levels no longer track price as closely as before. This decoupling highlights structural improvements in network efficiency.
Previously, rising ETH prices would increase fees due to congestion. Between 2020 and 2022, this pattern held as high usage drove prices up. Now, this link appears weaker as fees remain low.
From 2017 to early 2021, Ethereum fees acted like pressure indicators during high-activity periods. These included NFT booms, DeFi waves, and bull markets. During those phases, fees often surged for extended periods.
Now, Ethereum fees show a different pattern. They have remained low even as usage has grown. Each time prices rise, fee increases are weaker and shorter.
This shift indicates a possible long-term change in how fees respond to activity. On-chain demand now causes less fee volatility. That provides users with more predictable costs.
Glassnode noted, “Fee compression reflects reduced friction and more efficient use of block space.”
The market signals lower intensity in speculation. Users benefit from faster and cheaper transactions.
Fee levels today resemble those from Ethereum’s early adoption years. The network currently operates with less congestion. Block space is no longer scarce for basic transfers.
Ethereum’s base layer shows minimal stress. There is less competition for inclusion in blocks. As a result, users experience low-cost, high-speed transfers.
The post Lowest Ethereum Fees Since 2017 Follow Major Network Upgrade appeared first on CoinCentral.
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