The climbing transaction volume indicates users are returning to the layer-1 blockchain after previously migrating to cheaper layer-2 alternatives.
Ethereum News
The Ethereum layer-1 blockchain set a new transaction record Tuesday, processing 2.2 million transactions in a single day while fees dropped to an average of 17 cents. Block explorer Etherscan data confirms the milestone represents the highest daily transaction count for the mainnet.
Transaction costs on Ethereum peaked in May 2022 at over $200 per transaction. Fees have declined substantially since then despite growing network usage, with the most recent drop occurring since Oct. 10 when fees stood at $8.48 during a market-wide liquidation event.
The climbing transaction volume indicates users are returning to the layer-1 blockchain after previously migrating to cheaper layer-2 alternatives. Token Terminal data shows developers increasingly choose Ethereum as a settlement layer, with new smart contract deployments reaching 8.7 million in the fourth quarter of 2025.
Two major upgrades in 2025 contributed to the transaction spike and fee reduction. Pectra launched in May, targeting validator improvements and staking flexibility, and preparing the network for future scalability features.
Fusaka increased the gas limit from 45 million to 60 million, designed to boost scalability, data handling, and network efficiency. Over 50% of Ethereum validators signaled support for raising the network's gas limit in February, expanding the maximum gas available for transactions in a single block.
The staking queue flipped the exit line for the first time in six months on Monday. Almost twice as much Ethereum now awaits staking compared to Ethereum attempting to leave the network, Etherscan data shows.
Unstaking typically signals validators' plan to free up Ethereum for sale, while staking indicates confidence in locking tokens for long-term holding. The queue flip suggests growing validator commitment to the network.
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