- Ethereum average gas fees have dropped to $0.06.
- Will the low network activity derail ETH’s recovery prospect in the short term?
Ethereum’s [ETH] average gas price has fallen to 1 gwei (about $0.06), marking a record low in 2025.
Gas price is the amount users pay to transact on the Ethereum chain. As such, a fee drop could suggest increased scalability or reduced network usage.
Source: Etherscan
The latter, reduced network usage, appeared more likely to be the reason for the recent decline in base fees on the Ethereum chain.
Notably, after the blobs update in early 2024, the chain saw cheaper transaction costs, especially on the L2 protocols. However, some market pundits have argued that the update also drove most of the L1 demand to L2.
Ethereum network activity declines
For perspective, during the March 2024 peak, when ETH reached $4K, the average base fees spiked to over 90 gwei.
Similar spikes in base fees above 25 gwei have always been observed during ETH rallies and subsequent local tops.
Source: Ultra Sound Money
The same trend was repeated in early December (orange spikes) as ETH retested $4K.
However, i
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Author: Benjamin Njiri
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