Ethereum is entering a phase defined by higher usage and lower costs. Network data points to sustained growth without the congestion that once constrained activity.
The recent upgrades and shifting transaction patterns are changing how the blockchain operates. The trend suggests Ethereum can now scale while remaining accessible.
Ethereum transactions have reached a record high as network fees dropped to multi-year lows, even as ETH traded at $3,202.58 at the time of writing, down 3.2% over the past 24 hours.
Ethereum activity climbs as fees drop to historic lows
Data shows Ethereum’s seven-day moving average of transactions approaching 2.5 million. That level is nearly double the figure recorded a year earlier.
Onchain activity has risen steadily since mid-December. The increase reversed a slowdown that persisted through much of the second half of 2025.
At the same time, Ethereum gas fees have fallen to their lowest levels in modern network history.
Average transaction costs are hovering around $0.15, according to blockchain trackers.
Etherscan estimates indicate some common actions, such as token swaps, have recently cost as little as $0.04.
The pairing of record throughput and minimal fees contrasts sharply with earlier cycles marked by congestion.
Developers raised the block gas limit from 45 million to 60 million in late November, expanding execution capacity. The change allowed more transactions per block.
Meanwhile, a growing share of activity has shifted to layer-2 networks, reducing demand for mainnet blockspace even as total transactions rise.
Stablecoins are also driving Ethereum usage. Analysts at Standard Chartered estimate that stablecoin transfers now account for roughly 35% to 40% of all Ethereum transactions.
Geoffrey Kendrick, the bank’s global head of digital asset research, has described 2026 as a pivotal year for the network. He has cited Ethereum’s role as the primary settlement layer for onchain dollars.
Upgrades and staking data point to a structural shift
Developers attribute recent efficiency gains to protocol upgrades.
Ethereum’s Fusaka hard fork, activated seven weeks ago, introduced Peer Data Availability Sampling and formalized a twice-yearly upgrade cadence.
Network researchers say the update improved how data availability scales. A subsequent update in January adjusted blob parameters, increasing capacity and lowering data costs for layer-2 rollups.
ValidatorQueue data shows more than 36 million ETH locked in staking contracts. That figure represents about 30% of the circulating supply.
Entry queues have climbed to levels last seen in mid-2023. Exit demand has nearly disappeared, according to onchain monitors.
Ethereum co-founder Vitalik Buterin has described the moment as a broader transition. In a recent post on X, he said the network is entering a phase focused on restoring user autonomy and improving experience. He argued that earlier compromises made for adoption no longer need to define Ethereum’s future.
Buterin said 2026 would mark a return to stronger self-sovereignty and trustlessness.