Ethereum gas fees have dropped to historic lows of 0.16 gwei, equating to about $0.01 per transaction, thanks to upgrades like Pectra and Dencun that enhance scalability and reduce costs on the network.
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Ethereum processes over 1.6 million transactions daily with fees now under $0.01, making it more accessible for everyday use.
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Layer 2 networks benefit from doubled blob capacity, cutting fees by around 50% post-Pectra upgrade.
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Despite low fees, U.S. investor demand for Ethereum spot ETFs has stalled, with net redemptions reaching $169 million in late October.
Discover how Ethereum gas fees hit record lows in 2025, boosting scalability amid cooling U.S. demand and bullish historical patterns. Explore impacts and future outlook now.
What are the current Ethereum gas fees?
Ethereum gas fees currently stand at near-historic lows of 0.16 gwei, translating to roughly $0.01 per transaction on the main network. This reduction stems from recent upgrades that optimize resource usage and shift more activity to efficient layers, allowing the platform to handle over 1.6 million daily transactions without prohibitive costs. As a result, Ethereum’s infrastructure demonstrates greater maturity, supporting broader adoption for decentralized applications.
How have Ethereum upgrades impacted transaction costs?
The Pectra upgrade, implemented in May 2025, doubled the blob capacity for Layer 2 networks, slashing transaction fees on these solutions by approximately 50%. This move encouraged more activity off the mainnet, further alleviating congestion and costs. Complementing this, the Dencun upgrade earlier in the year also lowered Layer 2 fees while optimizing data availability on Layer 1. According to blockchain data from Milkroad, fees for token swaps hover around $0.15, while NFT sales average $0.27—still a significant improvement from previous highs. These enhancements collectively process more than 1 million transactions daily, with peaks reaching 1.6 million this week, all paid in Ether (ETH). Experts note that such scalability improvements position Ethereum as a robust foundation for real-world applications, from finance to gaming, without the volatility in fees that once hindered growth.
Frequently Asked Questions
What caused the recent drop in Ethereum gas fees?
The decline in Ethereum gas fees to 0.16 gwei results from the Pectra and Dencun upgrades, which expanded Layer 2 capacities and optimized mainnet efficiency. These changes reduced costs by up to 50% for off-chain transactions, handling surging volumes of over 1.6 million daily without fee spikes.
Why is U.S. demand for Ethereum spot products slowing?
U.S. demand for Ethereum has cooled due to stalled ETF inflows since mid-August and rising net redemptions, totaling $169 million in the week ending October 27. Factors include narrowing arbitrage opportunities from Grayscale conversions and macroeconomic pressures like higher bond yields, leading investors to favor lower-risk assets over ETH.
Key Takeaways
- Record Low Fees Enhance Accessibility: Ethereum’s gas fees at $0.01 per transaction signal improved scalability, enabling high-volume activity for users and developers alike.
- U.S. Investor Caution Prevails: With ETF redemptions hitting $796 million in late September, domestic buying pressure has eased, reflected in neutral Coinbase Premium and low CME futures basis.
- Historical Bullish Trends Offer Hope: November has averaged 6.93% gains for ETH, bolstered by whale accumulation of 1.64 million ETH, positioning for potential year-end recovery.
Conclusion
Ethereum gas fees have reached unprecedented lows of $0.01 amid upgrades like Pectra, fostering a more efficient network despite subdued U.S. spot demand and $169 million in recent ETF outflows. As whales accumulate over 100 million ETH and historical November patterns suggest bullish momentum with average 6.93% gains, the platform’s scalability improvements underscore its resilience. Investors should monitor Federal Reserve signals and broader market rotations for Ethereum’s next moves in this evolving landscape.
On the Ethereum network, a major smart contract platform, transaction fees have reached near-historic lows of just 0.16 gwei, or approximately $0.01 per transaction. This development signals a more mature and scalable infrastructure, ready for advanced real-world use cases.
More than 1 million transactions take place on the Ethereum network on a daily basis. This week, daily transactions rose to 1.6 million. But even with all the upgrades to the network, these transactions aren’t free. Gas fees must still be paid in Ethereum’s native token, Ether (ETH).
According to Milkroad, a blockchain data aggregator, gas fees were slightly higher for token swaps, at $0.15, and for non-fungible token (NFT) sales, at $0.27.
This has been attributed to the Pectra upgrade implemented in May, which has doubled the blob capacity of Layer 2 (L2) networks while reducing transaction fees on L2s by approximately 50%. More transactions were moved off the mainnet by this update, which further cut costs.
Additionally, Dencun, Ethereum’s latest major update, also reduced L2 transaction fees and shifted more transactions to the L1 layer.
However, it is not the cheapest network yet. New blockchain networks have offered much lower transaction fees and can process more transactions at higher speeds. The Solana network, for example, charges around $0.00025 per transaction as reported by Cryptopolitan.
US ETH spot demand slips
Demand for Ethereum from US investors has slowed considerably over the past week. The decline is quantified in a new report, which noted that Ethereum ETF inflows have nearly stalled since mid-August, underscoring subdued investor confidence.
On the other hand, Coinbase Premium indicators suggest that investors are showing less appetite for exposure to ETH. This metric tracks the difference between Ethereum prices on Coinbase and global averages. It has dropped close to zero. This signals a reduction in domestic buying pressure.
Similarly, the six-month CME futures basis for ETH has fallen to around 3%, a three-month low that implies institutions are less willing to pay a premium for leveraged positions.
Analysts attribute the cooling demand to the closing of the Grayscale arbitrage opportunity that initially drew inflows when Ethereum spot ETFs were launched. The week ending September 26 saw record US redemptions of approximately $796 million, concentrated in Grayscale’s ETH.
As that arbitrage narrowed, much of the early migration from legacy products faded. Outflows resumed around October 23-24, with the week ending October 27 recording roughly $169 million in net redemptions across US Ether ETPs.
Broader macroeconomic conditions have also weighed on institutional risk appetite. Rising bond yields and uncertainty around US Federal Reserve policy have led investors to rotate out of higher-beta assets such as ETH.
At the same time, Ethereum’s relative underperformance against some other crypto coins has reduced speculative interest among traders who had previously sought stronger momentum.
Ethereum’s historic pattern signals bullish trades as the year closes
Ethereum is entering November with cautious optimism. The second-largest crypto coin by market cap is down about 5% in the last 24 hours.
However, historically, November has favored Ethereum, averaging 6.93% monthly gains, with 2024’s 47.4% rally marking one of its best months on record. To that end, analysts say that Ethereum’s November record leans bullish.
🐳🦈 Ethereum whales and sharks holding between 100 to 10,000 $ETH are finally showing some signs of confidence. After -1.36M was dumped by this group between October 5th and 16th, they have added back close to 1/6th of it since. Positive sign for crypto’s #2 market cap.
— Santiment (@santimentfeed) October 24, 2025
This is supported by whales who are quietly building positions. According to Santiment, wallets holding between 1,000 and 100,000 ETH increased their balance from 99.28 million to 100.92 million ETH through October, steady buying even after a 7% monthly price decline. That’s akin to adding 1.64 million ETH, worth roughly $6.4 billion at the current price.
Meanwhile, the entire crypto market has fallen slightly after Jerome Powell, Chair of the Federal Reserve Board, hinted that a 25-point interest rate cut in October may be the last such cut of 2025.
