Ethereum Transactions at Record High, Fees at Record Low

The Ethereum network simultaneously reaches two extremes: the number of monthly transactions has never been higher, while the average cost per transaction hits an all-time low. That combination is attracting more and more major players to the network.

Ethereum is available at OKX and Bybit.

In short:

• The monthly number of transactions on the Ethereum network is at an all-time high.
• The average transaction fee has fallen to $0.0191, the lowest level ever recorded.
• Institutional players are increasingly choosing Ethereum as the basis for new projects.

Record number of transactions at record-low fees

Figures from Token Terminal show that the Ethereum network has been heading towards 75 million transactions per month recently, a level the network has not reached before. Across the network’s entire history, the platform has now processed 3.7 billion transactions.

At the same time, costs for users have never been so low. The average transaction fee currently stands at $0.0191. By comparison, around early 2022 that figure rose to more than $20 per transaction. This drastic decline is largely attributable to the rollout of layer 2 solutions and the technical improvements implemented since then.

Why institutions choose Ethereum

The combination of increased usage and lower costs makes the network more attractive to major players looking to build serious infrastructure. Whereas high gas fees previously formed a barrier to applications on a large scale, that obstacle has now largely disappeared.

Institutional interest in Ethereum has become more broadly visible in recent times. For example, Grayscale wants to move nearly all of its Ethereum into a staking ETF, which indicates that major asset managers take the network seriously as long-term infrastructure. The Ethereum price currently stands at $1.920, virtually unchanged over the past 24 hours. Earlier this week, the price was already fluctuating around $1.900, with the question of whether a breakout towards $2.000 is on the horizon.