Ethereum L1 Hits 2.2M Daily Transactions as Average Fee Falls to $0.17
Ethereum mainnet (L1) recorded a new single-day high of roughly 2.2 million transactions while average per-transaction fees have fallen to about $0.17, according to Etherscan. Fees peaked in May 2022 at over $200 per transaction and fell during market downturns; they were around $8.48 on October 10. Recent protocol upgrades in 2025 — Pectra (validator improvements and staking flexibility) and Fusaka (increasing gas limit from 45M to 60M and improving scalability and data throughput) — are credited with boosting capacity and lowering fees. On-chain activity is rising: Token Terminal reports a record ~8.7 million new smart contracts created and deployed on Ethereum in Q4 2025. Staking dynamics show the stake-in queue recently exceeded the exit queue for the first time in six months, with awaiting stake roughly double the amount queued for exit. Higher L1 throughput and lower fees have drawn some users back from L2s, and more developers are using Ethereum as a settlement layer. Key implications for traders: reduced transaction costs improve on-chain trading and arbitrage efficiency; higher throughput may support greater DeFi and NFT activity, potentially increasing on-chain volume and liquidity.
Bullish
The news is bullish for ETH trading conditions and network fundamentals. A surge to 2.2M daily L1 transactions combined with a drop in average fees to $0.17 signals higher on-chain capacity and improved cost efficiency — conditions that typically attract traders, DeFi activity, and developers back to the mainnet. The 2025 upgrades (Pectra and Fusaka) materially increased gas limits and throughput, reducing congestion and enabling more on-chain operations and smart contract deployments (Token Terminal’s ~8.7M new contracts in Q4 2025). Historically, lower fees and greater throughput have supported higher on-chain volumes and liquidity, benefiting price discovery and arbitrage opportunities; examples include periods after major scaling improvements when DeFi TVL and trading volumes rose. Short-term, traders may see increased on-chain activity, tighter spreads, and more arbitrage — potentially positive for ETH speculative demand. Medium-to-long term, improved settlement viability and developer adoption strengthen fundamental demand for ETH (as gas and staking asset). Risks remain: macro volatility, regulatory developments, or renewed network congestion if demand outpaces capacity could mute gains. Overall, the balance of factors supports a bullish outlook for ETH market activity and utility.