Ethereum is seeing a rare mix of heavy use and very low costs. Data from Glassnode shows that average transaction fees have fallen below $0.01. This is the lowest level since May 2017. Though network activity remains strong.
On January 16, ETH processed close to 2.9 million transactions in a single day. In past cycles, this level of use would have pushed fees much higher. Now, the opposite is happening. Cheaper transactions are making the network easier to use, even as demand stays high.
Record Activity With Near-Zero Costs
Ethereum’s daily transaction count has reached new highs in January 2026. In earlier years, similar traffic caused fee spikes of $20 to $50 or more. That was common during NFT booms and meme coin waves.
JUST IN : Ethereum transaction fees drop to their All Time Low level since May 2017
Source : GLASSNODE pic.twitter.com/DsAJDLri8O
— Whale Degen (@hiwhaledegen) January 27, 2026
This time, fees remain extremely low. Glassnode’s seven-day average shows costs at levels last seen when Ethereum was still a young network. Simple transfers now cost less than one cent. In many cases they cost only a fraction of a cent. This change means users can move funds, interact with apps and send stablecoins without worrying about high gas fees. For traders and developers, this removes one of Ethereum’s biggest pain points.
Upgrades and Layer-2 Networks Lead the Shift
Several technical changes explain why transaction fees are so low. Ethereum’s past upgrades like EIP-4844, reduced the cost of posting data to the network. Later improvements increased block capacity and improved efficiency.
Though much of the activity moved to Layer-2 networks like Arbitrum, Optimism and Base. These networks handle large volumes of transactions. Then settle them on Ethereum. Because of this, the main chain no longer faces constant congestion. As a result, Ethereum can process more transactions while keeping fees low. This shows that its scaling plan is working as intended. The network now supports higher throughput without sacrificing security.
What This Means for Users and Builders
Low transaction fees make Ethereum more useful for everyday actions. People can send small payments without losing value to gas. DeFi apps become easier to use. NFT minting and trading become cheaper. This also helps new users. High transaction fees once kept many people away from Ethereum.
Now, costs no longer block entry. Developers can build apps for payments, games and social tools. Without worrying about users facing high charges. Lower fees also support stablecoin use. Transfers that once cost dollars now cost almost nothing. That makes Ethereum more practical for real world financial tasks.
Challenges and the Bigger Picture
There is one downside. Lower transaction fees mean less ETH is burned through the fee system. This can reduce Ethereum’s deflation effect. In some periods, ETH supply may grow instead of shrink. But many see this as a fair trade. A larger and more active ecosystem may create more long term value than high transaction fees. More users, more apps and more transactions strengthen Ethereum’s role as a base layer for crypto.
Currently, Ethereum is proving that it can grow without pricing out users. Record usage and record low transaction fees show that its scaling strategy is paying off. If this trend continues, Ethereum could attract even more activity in 2026 and beyond.
