For the first time in 9 years: Ethereum Gas fees have fallen back to 2017 levels, but transaction volume has hit a new all-time high

The Ethereum network is experiencing an “unusual” structural change. On one side, transaction fees have dropped to their lowest levels in nearly nine years, while on the other side, transaction volume is approaching record highs. Behind this seemingly contradictory phenomenon is the proof that years of scalability efforts are finally bearing fruit.

High Frequency, Low Fees: The Data Truth Behind the Anomaly

According to Glassnode data, the average transaction fee on Ethereum has fallen below $0.01, a level never seen since May 2017. On January 16th, the number of daily transactions on Ethereum approached 2.9 million, nearly breaking the historical record.

How outrageous is this comparison? Just look at history. Under similar network loads in the past, Gas fees often soared to the $20 to $50 range, and even higher during NFT booms and meme coin cycles. But in early 2026, ordinary transfers often only cost a fraction of a cent.

Bitfinex’s latest report also independently verifies this phenomenon, stating that Ethereum exhibits an “high throughput, low fee” abnormal characteristic, which is indeed rare in blockchain history.

How Scalability Solutions Make This Possible

Behind this transformation is Ethereum’s multi-pronged scalability strategy gradually coming to fruition:

EIP-4844 and Mainnet Optimization

The previously launched EIP-4844 (formerly Proto-Danksharding) significantly reduces data publication costs and improves block utilization. This is akin to giving Ethereum’s mainnet a “slimming” process, allowing each block to carry more transactions.

Layer-2 Sharding Effect

More importantly, a large volume of transactions has shifted to Layer-2 networks like Arbitrum, Optimism, and Base. The logic of these systems is simple: process transactions efficiently off-chain first, then settle collectively on the mainnet. This prevents Ethereum’s mainnet from experiencing frequent congestion.

Related reports show that the revenue of the Base chain recently surpassed Polygon, making it the most profitable Ethereum L2 chain. Since launching its mainnet in August 2023, on-chain net revenue has reached $160 million. This indicates that the Layer-2 ecosystem is mature enough to genuinely bear the network’s pressure.

Ecosystem Beneficiaries and Application Scenarios

For users, this means a significant improvement in Ethereum blockchain usability:

• Micro-transfers cost almost nothing
• Stablecoin payments become truly feasible
• DeFi operations see a substantial cost reduction
• NFT minting thresholds are significantly lowered

Ordinary users and developers who were once discouraged by high Gas fees can now participate more easily in the ecosystem. This change is especially critical for Web3 applications, on-chain gaming, and payment scenarios. It also explains why whales transferred 38,000 ETH to staking contracts during the same period—market confidence in Ethereum’s long-term prospects is strengthening.

A New Balance in Token Economics

However, low fees also introduce new balancing issues. The decrease in Gas fees means less ETH is burned, potentially weakening the network’s deflationary effect, and in some phases, even causing supply to increase.

But there is a key shift in understanding: an ecosystem with more real users and higher transaction frequency is more valuable in the long run than one relying on high fees to maintain scarcity. In other words, Ethereum is shifting from a “scarcity-driven” model to a “usage value-driven” one.

Bitfinex’s report also highlights a practical issue: recent transaction volume may include low-value activities like address poisoning, especially in stablecoin transactions. This means that using transaction volume alone to measure real economic activity requires caution, but it does not change the overall trend.

The Endgame of Modular Architecture

Currently, Ethereum is demonstrating a new operational state: achieving high throughput and low costs without sacrificing security and decentralization. This modular architecture is closer to the layered logic of traditional financial infrastructure—where the bottom layer emphasizes security, determinism, and final settlement, while the upper layer handles innovation and complex execution.

If this trend continues, ETH in 2026 could attract a larger base of real users. From payments to DeFi, from gaming to RWA (real-world assets on-chain), Ethereum is laying a more solid foundation for these applications.

Summary

Ethereum’s “high frequency, low fee” environment is not accidental but the inevitable result of years of technological accumulation. Gas fees returning to 2017 levels may seem like a step backward, but in reality, they represent a new balance point between user experience and network efficiency. This marks an important shift for Ethereum from pursuing single-chain performance to building a truly modular ecosystem.

Most importantly, this change is attracting genuine users and builders. When fees are no longer a barrier, the ecosystem’s true competitiveness—security, liquidity, and application diversity—can fully emerge.