Ethereum is entering an unexpected new phase as transaction fees on its Layer-1 network fall to some of the lowest levels ever recorded.
For years, users criticized Ethereum’s high gas fees, especially during the DeFi Summer of 2020, when network congestion pushed transaction costs to unprecedented heights, forcing retail and institutional participants toward cheaper Layer-2 solutions.
Now, the tides appear to be shifting. Several analysts note that Ethereum L1 gas fees are hovering near all-time lows, prompting both long-time users and returning participants to reconsider transacting directly on the main chain. Some traders even say that this is the first time since 2020 that they feel confident using Ethereum L1 consistently and without hesitation.
Token Terminal highlighted the ongoing fee environment in a recent update, pointing out that the sudden drop is reshaping user behavior and encouraging a renewed wave of mainnet activity.
The industry is now asking a critical question: if Ethereum can sustain low transaction costs over time, could this spark a genuine Layer-1 renaissance?
Those who have remained loyal to Ethereum’s main chain argue that many of its strengths never disappeared, they simply became too expensive to access. Today, as fees decline, users are rediscovering what made L1 the center of decentralized finance in the first place.
Two key factors are driving renewed interest:
1. Improved liquidity pools and asset diversity on L1.
Ethereum’s native pools offer deeper liquidity, mature collateral options, and more stable yields. Many users prefer holding long-term assets on L1 rather than risk fragmented liquidity and bridge exposure on Layer-2 networks.
2. Better application design and one-click DeFi abstraction.
Over the past two years, developers have focused heavily on removing complexity. Many top decentralized applications now allow users to deposit, swap, borrow, and exit positions with minimal friction, effectively eliminating the intimidating learning curve that defined early DeFi.
If these trends continue while fees remain low, Ethereum could regain its status as the default network for high-value transactions, institutional deployments, and long-term asset management.
Fresh data from Glassnode confirms that Ethereum is not only cheaper to use, it is also busier. Analysts at @glassnode report a twofold increase in month-over-month activity retention, marking one of the strongest expansions in user engagement the network has seen in years.
The research indicates that this surge is not merely the result of old users returning. Instead, a large influx of new wallets is participating in the ecosystem for the first time. According to Glassnode, the number of addresses interacting with Ethereum in the past 30 days has doubled from 4 million to 8 million.
This dramatic growth suggests that Ethereum’s lower fees are opening the door to a wave of new retail users, builders, and automated systems that previously avoided mainnet interactions due to cost barriers.
Glassnode shared the full breakdown here:
Analysts say this indicates more than a short-term spike, it represents structural growth, based on onboarding rather than recycled activity.
Alongside the surge in new active addresses, Ethereum is posting new transaction records. Daily transactions reached 2.8 million, setting a fresh peak and representing a 125% year-over-year increase.
This metric highlights the scaling improvements and better throughput that developers have been implementing through upgrades like proto-danksharding preparations, optimized execution layers, and more efficient gas pricing mechanics.
The combination of cheaper transactions and higher throughput makes Ethereum L1 far more accessible, especially for smaller transactions that were previously uneconomical. For example:
These developments point to a network that is simultaneously stabilizing and expanding, rather than contracting under high-fee pressure.
Experts say Ethereum’s low-fee environment is changing user habits in real time. Wallet activity and behavioral analytics show the following trends:
While Layer-2 networks remain important for scaling, the present shift suggests that users prefer operating on L1 when cost barriers are removed. This may influence future application design, with developers potentially prioritizing mainnet deployments over multi-chain rollouts.
Additionally, some market analysts believe Ethereum’s reduced friction could attract more institutional flows. Historically, institutions prefer stable, secure settlement layers, yet excessive fees discouraged sustained activity. If L1 remains affordable, Ethereum may reassert itself as the central liquidity hub of Web3.
As Ethereum balances scaling improvements with decreasing transaction fees, industry observers are cautiously optimistic. The network’s lower-cost environment is boosting adoption, attracting new users, and reactivating long-dormant features of the ecosystem.
However, questions remain about whether this low-fee window is temporary or structural. Demand cycles, network congestion, NFT activity, and new DeFi trends could all influence whether Ethereum can maintain this environment long-term.
Still, the current data strongly supports the idea of an emerging Ethereum L1 revival. With more apps abstracting complexity, a growing influx of new wallets, and activity levels hitting historic highs, many believe the network is entering a fresh growth phase, one that could reshape the distribution of liquidity across the entire crypto landscape.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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