- Ethereum fees drop below $0.17 as network activity hits multi-year lows.
- Falling ETH prices and low usage drive rare compression in transaction fees.
- Sub-$0.20 fees reflect quiet markets and rising network efficiency post-upgrades.
Ethereum’s average network charge has dipped to its lowest level in nearly four years, sitting below $0.17 per transaction. The decline is reflective of an extensive transition in on-chain activity and operates in conjunction with Ethereum’s broader price downtrend since December of 2024.
Fee Compression Signals Decline in On-Chain Activity
The average Ethereum transfer cost has fallen below $0.17, marking the lowest level since May 2, 2020. In a post by Bitcoinsensus, it was noted, “Low fees often signal reduced demand, but can also open doors for accumulation opportunities,” referencing historical trends of activity declines before market rebounds.
The timespan highlights a persistent decline in fee volatility since mid-January, with prices and fees falling in tandem. Ethereum’s average transaction fee remained under $0.50 through April, suggesting fewer congestion periods and lowered user competition on-chain.
Prolonged Downtrend Limits Gas Fee Pressure
In Santiment’s report, the steady decline in Ethereum’s price from $4,000 in December 2024 to under $1,800 by April 2025 was cited as a direct factor in falling fees. This trend aligns with reduced speculative interest, declining trading volume, and fewer spikes in gas costs, especially after early February.
Ethereum’s price consistently failed to reclaim key levels, particularly after the March 15 drop. The report outlines that each breakdown phase correlated with decreased on-chain interaction, pushing average fees to a rare compression point unseen since before the DeFi boom.
Network Efficiency Rises Amid Market Contraction
Ethereum’s current on-chain conditions mirror the pre-2020 DeFi era, with low user activity and stable gas prices. Protocol upgrades such as EIP-1559 and rollup adoption have improved block space efficiency, helping maintain sub-$0.20 average transaction costs throughout April.
Network metrics confirm a long-term easing in fee volatility as the ETH price struggles to find bullish momentum. Ethereum now operates with significantly less congestion, offering a scalable transaction environment amid a broader crypto market slowdown.
