Ethereum transaction fees have dropped sharply, with the average cost per transfer falling to $0.095 from a 2025 peak of $0.72 in April. Network upgrades including Fusaka, higher blob throughput, and a 60 million gas limit, combined with Layer 2 solutions handling more activity, have increased capacity and lowered costs. ETH recovered from near $2,350 to over $2,480 this week. Meanwhile, exchange supply has declined 73% since June 2020, with only 6.06 million ETH now available on exchanges, reducing readily available supply and potentially amplifying buying pressure.
Ethereum transaction fees have fallen sharply, with the average cost per transfer dropping to roughly $0.095 from a 2025 peak of $0.72 on April 21, according to Santiment’s findings. The decline reflects softer mainnet demand during the bearish summer and network upgrades that have increased Ethereum’s capacity.
Upgrades such as Fusaka, higher blob throughput, and a 60 million gas limit have helped the network handle more activity. Layer 2 solutions are also processing large transaction volumes that previously competed for mainnet blockspace.
Santiment noted that lower fees could make Ethereum more accessible for users and developers. Swaps, transfers, DeFi activity, stablecoin movements, and ERC-20 transactions can now be completed at a lower cost.
The analytics platform stated that cheap transactions do not necessarily mean demand is recovering. However, lower costs remove one of Ethereum’s long-standing barriers.
Ali Martinez observed that the asset is trading within a defined 4-hour channel despite recent volatility. ETH has reached the lower boundary of the range, bringing the $2,570 level into focus.
Martinez expects a potential rebound toward the middle and upper end of the channel. A strong 4-hour close above $2,570 with higher trading volume could signal a breakout, with next stops at $2,700 and $3,000.
The Long Investor believes Ethereum remains a buy despite an almost 45% rise over the past three months. The investor said “buying before ETH moves above $3,000 may put investors ahead of late buyers” and pointed to the 200-week moving average as a strong long-term reference.
Exchange supply has dropped significantly, with only 6.06 million ETH now sitting on exchanges, down from 22.9 million at the June 2020 peak. That represents a 73% decline in readily available supply.
The drop reflects more ETH moving into staking, ETFs, treasury holdings, and long-term custody. Validators are locking ETH to help secure the network, and lower liquid supply may increase the impact of buying activity.
