Ethereum Hits Key Milestone as Fees Continue to Fall

Ethereum is known for high transaction fees on the network, but that is changing. Recent data shows that gas fees on the network have been steadily declining as the network continues its upgrades.

Data shared by crypto analyst Rand shows that gas fees on the network have hit a 5-year low, suggesting a sustained decline. This suggests that Ethereum’s recent upgrades, which triggered the fee drop, have been effective in correcting the long-standing flaw in the network.

Ethereum Becomes More Competitive

Ethereum is the second-oldest and second -largest network after Bitcoin. However, over the years of its existence, users have been plagued by slow transactions and high fees. As a result, even the network’s reliability for building decentralized applications could not prevent developers from exploring alternative networks such as Solana.

This became evident at the end of 2025 when Solana surpassed Ethereum in on-chain revenue for the first time. However, the recent Fusaka and Pectra upgrades seem to be eliminating the fee challenge, leaving the network with only low scalability, which Ethereum co-founder Vitalik Buterin said is not a major problem. 

If Ethereum has made such improvements, it could become more competitive against Solana and other networks that have succeeded in “stealing” its developers and regular users in the past. This would mean more NFT trading, more stablecoin transactions, and more developer activity, which have seen much competition in the past few years.

According to analysts, this also means that traditional finance (TradFi) could have a more welcoming network to build on, potentially boosting Ethereum’s relevance. The network hit a milestone of 2.2 million daily transactions with an average fee of $0.17 at the end of December. 

Improvement Yet to Translate Into Price

While the Ethereum network is starting to see improvement in fees, this improvement is yet to reflect in its price movement as the coin continues to struggle. Like Bitcoin, it traded below $3,000 for most of 2025 before breaking out in early January.

However, if the decline in gas fees attracts more users and developers, this may reflect in the price of the token eventually as more users come on board. This may take some time, but a consistent drop could bring the change that token holders so desire.

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