- The current price of $0.168 for Ethereum transactions is the lowest since May 2020.
- Ethereum’s market cap is $192.12 billion, with $13.43 billion in 24-hour volume.
- The upcoming upgrades in Ethereum aim to reduce costs and improve scalability.
Ethereum (ETH) has officially reached its lowest transaction fees in over five years, with costs now as low as $0.168 per transfer. According to Santiment data, this marks the cheapest daily transfer fees for ETH since May 2, 2020. The chart shows a steady drop in Ethereum’s average transaction fee, starting from January 2025. This was also a gradual decrease in ETH price, which reflected a strong correlation between the number of transactions and activity in the network. As of today, Ethereum is worth $1,591.77, an increase of 0.65% over the past 24 hours.
Source: X
Santiment’s data reveals several peaks and valleys in Ethereum’s transaction fee structure between January and April 2025. A rapid fee increase is shown in the graph in the middle of January, which is then portrayed as a slow decline in February and March. The fees mirrored the price movements of Ethereum, from about $2,600 in January to nearly $1,600 in April.
On April 13, 2025, the average fee level gradually dropped to approximately $0.168. The past price dynamics of the Ethereum network show there is a direct relationship between transaction demand, network activity, and price fluctuations.
Lower Fees Driven by Network Efficiency
According to Santiment, this reduction in transaction costs can be attributed to decreased network congestion and a lower demand for transactions. Ethereum’s blockchain has optimized its operations, allowing for these substantial fee reductions. It is an effect that Dencun’s update, scheduled for March 2024, reduced costs for Ethereum rollups, thereby providing an improved outline for all the Ethereum development efforts that focus on enhancing network efficiency. All of these will continue into this next phase of Ethereum upgrades, especially the Pectra upgrade rolling out between late 2025 and early 2026.
Undoubtedly, the Pectra upgrade comes with a new data format poised to enhance storage efficiency. This format is expected to allow nodes to verify data without storing the entire blockchain, improving transaction speeds while lowering costs. Hence, with these upgrades, Ethereum will become scalable and efficient, fortifying its competitiveness in the blockchain marketplace.
Related: Will Ethereum Bounce at Critical $1,546.55 Support Level?
Ethereum’s Market Position and Future Prospects
As of press time, Ethereum’s market cap stands at $192.12 billion, with a 24-hour trading volume of $13.43 billion, reflecting a slight increase of 2.04%. The 24-hour volume-to-market cap ratio is 7.36%, indicating robust market activity according to CoinMarketCap. Ethereum’s circulating supply is 120.69 million ETH, matching its total supply. This ensures a balanced and active circulation of Ethereum tokens in the market.
Source: CoinMarketCap
Despite low transaction costs, Santiment’s analysis shows Ethereum has worked on developing features and systems. The Pectra upgrade is on the horizon, and rollups are still in active development, with work expected to make transaction fees cheaper than ever so that Ethereum will become more accessible and scalable.
