Ethereum is seeing a rare combination of heavy usage and very low cost. According to Glassnode data, the average transaction fee was below $0.01. This is the lowest level since May 2017, but network activity remains strong.
January 16th, $ETH Nearly 2.9 million transactions were processed in one day. In past cycles, this level of usage would have resulted in even higher rates. Now the opposite is happening. Even though demand remains high, cheaper transactions are making the network easier to use.
Record your activities at almost zero cost
Ethereum’s daily transaction count reached a new high in January 2026. Previously, similar traffic would result in fees ranging from $20 to $50 or more. It was common at that time $NFT Boom and wave of meme coins.
JUST IN: Ethereum transaction fees fall to their lowest level since May 2017
Source: GLASSNODE pic.twitter.com/DsAJDLri8O
— Whale Degen (@hiwhaledegen) January 27, 2026
The fees remain very low this time as well. Glassnode’s 7-day average shows costs at levels last seen when Ethereum was a young network. A simple money transfer now costs less than a cent. In many cases, it costs as little as 1 cent. This change will allow users to move funds, interact with apps, and send stablecoins without worrying about high gas fees. For traders and developers, this eliminates one of Ethereum’s biggest pain points.
Upgrades and Layer 2 networks lead the change
Several technical changes explain why trading fees are so low. Past upgrades to Ethereum, such as EIP-4844, have reduced the cost of sending data to the network. Subsequent improvements have increased block capacity and improved efficiency.
However, much of the activity has moved to layer 2 networks such as Arbitrum, Optimism, and Base. These networks process large volumes of transactions. Next, pay to Ethereum. Therefore, the main chain no longer faces continuous congestion. As a result, Ethereum will be able to process more transactions while keeping fees low. This indicates that your 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 even more useful for everyday activities. People can send small amounts of money without losing the value of the gas. DeFi apps are easier to use. $NFT Cheaper to mint and trade. This is also useful for new users. In the past, high transaction fees drove many people away from Ethereum.
Cost is no longer a barrier to entry. Developers can build apps for payments, games, and social tools. Users don't have to worry about being charged high fees. Lower fees also support the use of stablecoins. Remittances that once cost dollars are now almost free. This makes Ethereum more practical for real-world financial tasks.
Challenges and the big picture
There is one drawback. Lower transaction fees mean lower costs $ETH It is burned through a fee system. This could reduce the deflationary effect on Ethereum. Depending on the time, $ETH Supply could increase rather than contract. However, many people consider this 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 will strengthen Ethereum's role as a base layer for cryptocurrencies.
Ethereum is now proving that it can grow without imposing a price on its users. Record usage and record low transaction fees show that the company's scaling strategy is working. If this trend continues, Ethereum could attract even more activity in 2026 and beyond.
