When was the last time anyone could send money across the internet for just four cents? That’s exactly what’s happening on Ethereum right now, where basic transactions cost around $0.04. It’s a dramatic change from the eye-watering fees of $100 to $150 during the 2021 crypto boom when buying a simple digital cat could cost more than a fancy dinner.
This fee revolution stems from Ethereum’s Dencun upgrade in March 2024. Think of it like adding express lanes to a crowded highway. Gas fees plummeted to 0.067 Gwei, the lowest in years, making the network accessible to regular users again.
Ethereum’s Dencun upgrade transformed the network like adding express lanes to a congested highway, making transactions affordable for everyone again.
Today, you can swap tokens for about $0.11, buy an NFT for $0.19, or take out a crypto loan for just $0.09. With one dollar, users can now make dozens of transactions instead of barely affording one.
The upgrade particularly helped Layer-2 networks like Arbitrum and Base, which act like efficient side roads that eventually connect back to the main Ethereum highway. These networks handle much of the traffic, keeping costs low and speeds high. However, these Layer-2 solutions divert revenue away from Ethereum’s base layer, fundamentally changing the network’s economic structure.
Daily transactions now exceed 1.6 million as users flock back to enjoy these penny-pinching prices. The dramatic shift became especially apparent after onchain activities slowed following October’s devastating market crash.
However, this success creates an unexpected problem. Ethereum’s validators, who secure the network like digital security guards, earn money from transaction fees. With fees dropping 99%, their income has nosedived too.
It’s like a restaurant becoming so efficient that it barely charges customers, leaving servers struggling to pay their bills.
This situation worries analysts who see it as a double-edged sword. While accessibility improves dramatically, the economic foundation supporting Ethereum’s security weakens. Validators might lose motivation to maintain the network if rewards stay low, potentially creating security risks.
Recent market turbulence in October 2025 showed this volatility, with fees spiking to 15.9 Gwei during a flash crash before quickly dropping again.
Ethereum now faces an intriguing challenge: can it maintain its success while ensuring the network remains financially sustainable and secure for the long term?
