Ethereum Gas Fees Stay Low Post-Pectra Upgrade, Bitcoin Transaction Costs Remain Soft, Boosting DeFi and NFT Activity

Published: 2025-05-18 17:34:04 |

Ethereum transaction fees have dropped significantly since the Dencun upgrade and have remained consistently low following the recent Pectra upgrade. These upgrades have increased network efficiency, improved scalability, and reduced congestion on the Ethereum blockchain, pushing average swap costs down from previous highs of $86 to around $0.39. NFT transaction fees have similarly fallen, enabling lower-cost activity across DeFi and NFT sectors. The reduced gas fees are making Ethereum more attractive to both users and developers, potentially driving higher on-chain activity. Meanwhile, Bitcoin transaction fees have remained low and stable with no major spikes, reflecting moderate network usage and limited congestion amid broader macroeconomic uncertainty. Despite the positive infrastructure changes, the price of Ether has seen a notable decline, and Ethereum still faces stiff competition from other Layer 1 platforms such as Solana. The ongoing improvements via the Pectra upgrade may further boost network appeal, but long-term challenges remain as Ethereum seeks to strengthen its position in the face of active competitors and evolving market dynamics.

Bullish

Significantly lower and stable Ethereum gas fees following the Dencun and Pectra upgrades have improved network scalability and usability, providing a catalyst for growth in DeFi and NFT sectors by reducing transaction costs. This benefits overall ecosystem activity and can potentially attract more developers and projects to Ethereum. Bitcoin’s consistently low fees indicate stable usage and no immediate network pressure. Although Ether’s price has declined, the structural improvements and lower transaction costs are likely to support increased user engagement and could create a favorable environment for medium- to long-term price stabilization and growth, especially if these lower fees persist and further upgrades succeed in addressing remaining scalability and competition challenges.