Etherscan data reveals that Ethereum's Gas fees have remained at multi-year lows over the past month, dropping over 90% from peak levels. The current average Gas fee sits at 20 Gwei—the lowest point in nearly a year.
Historical Context: Gas Fee Volatility
During most of 2020, Ethereum transaction fees typically stayed below 100 Gwei. However, the 2021 crypto bull market triggered unprecedented spikes—100 Gwei fees became routine, with extreme cases exceeding 1,000 Gwei during network congestion.
A significant shift began in April 2025, when Gas fees entered a sustained downward trend, consistently remaining below 40 Gwei for over a month.
The Three Driving Forces Behind Reduced Gas Fees
1. Declining Transaction Volume
- Key Data: Daily Ethereum transactions fell from 1.65 million to 1.1 million between May and June 2025.
- Market Impact: Reduced activity in DeFi and NFT markets directly correlates with lower network demand.
👉 Why Ethereum Layer 2 solutions are gaining traction
2. Flashbots Adoption
- Mechanism Change: Flashbots transactions use a zero-Gas fee model, replacing traditional bidding with Ethereum price-based rewards.
- User Tradeoff: Lower Gas prices increase mempool wait times, but significantly reduce costs.
3. Layer 2 Solutions (Polygon's Rise)
- Growth Metrics: Polygon's TVL surged from $100M** to **$7.9B peak (currently $5B) between April-June 2025.
- Network Effect: Daily transactions reached $1.7B at peak, diverting activity from Ethereum mainnet.
Future Outlook: Sustainable Gas Fee Models?
Upcoming developments could stabilize Gas fees long-term:
- Ethereum 2.0 upgrades
- EIP-1559 implementation
- Expanding Layer 2 ecosystems
While these innovations may prevent future spikes, fee volatility could return if demand suddenly surges.
FAQ: Understanding Ethereum Gas Fees
Q: What time of day has the lowest Gas fees?
A: Typically 3-6 AM UTC when network activity is lowest.
Q: How does Polygon reduce Ethereum congestion?
A: By processing transactions on a parallel chain before finalizing them on Ethereum.
Q: Will EIP-1559 eliminate high fees?
A: No—it improves fee predictability but doesn't remove market-driven fluctuations.
Q: Are Flashbots transactions reversible?
A: No, they follow Ethereum's same immutable settlement model.
👉 Explore Ethereum scalability solutions
Q: How long will low Gas fees last?
A: Dependent on market conditions—increased DeFi/NFT activity could reverse the trend.
Q: Is Polygon secure compared to Ethereum?
A: It uses Ethereum's security for final settlement while optimizing speed via sidechains.
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