Just a few years ago, sending a simple transaction on Ethereum could cost you $50, $100, even $200. If you tried to swap tokens or mint an NFT during a popular drop, you’d watch your wallet bleed ETH as gas prices spiked into the stratosphere. People called it a broken system. Some abandoned Ethereum altogether. But today? The story has flipped.
As of February 2026, the average Ethereum gas fee is $0.39. That’s not a typo. It’s down from over $15 two years ago. A simple ETH transfer now costs less than a coffee. Even complex DeFi trades often run under $1. So why does the question "Why are gas fees so high on Ethereum?" still come up? Because people remember the old pain-and they’re confused when they hear about spikes today. The truth is, fees aren’t high anymore. But they’re not always low, either. And that’s the real story.
How Ethereum Gas Fees Actually Work
Ethereum doesn’t charge a flat fee. It charges for work. Every action on the blockchain-sending ETH, swapping tokens, staking, lending, even clicking "Approve"-requires computers to process it. That’s called computation. And computers use electricity. Gas is the unit that measures how much computation a transaction needs. More complex actions? More gas. Simple transfers? Less gas.
Gas is priced in gwei. One gwei equals 0.000000001 ETH. In 2024, you might’ve paid 72 gwei per unit of gas. Now? It’s around 2.7 gwei. That’s a 96% drop. So why do some users still feel like fees are high? Because gas isn’t fixed. It’s dynamic.
Since the London Hard Fork in 2021, Ethereum uses a two-part fee system: the base fee and the priority fee (also called a tip). The base fee is automatically calculated every block based on how full the network is. If blocks are full, the base fee goes up. If they’re half-empty, it drops. Crucially, this base fee is burned-destroyed forever. That means ETH is slowly getting scarcer. No one gets paid from it. It just vanishes.
The priority fee? That’s what you add on top if you want your transaction to jump ahead. It goes straight to validators. Think of it like tipping a waiter to get your order faster. Most people don’t need to tip. But during spikes, you might.
What Caused the Big Drop? The Dencun Upgrade
The real game-changer came in March 2024 with the Dencun upgrade. It didn’t fix everything overnight. But it did something brilliant: it added data blobs.
Before Dencun, all transaction data had to be stored on Ethereum’s main chain. That meant every swap, every NFT mint, every smart contract call took up expensive space. After Dencun, most of that data got moved off-chain-into temporary, cheap storage called "blobs." The main chain still verifies the data is valid, but it doesn’t have to store it long-term. Think of it like sending a photo via text instead of mailing a printed album. Same result. Way cheaper.
The effect? Rollups-Layer 2 networks like Arbitrum, Optimism, and Base-saw their costs drop another 90%. And because they handle 80% of Ethereum’s transaction volume now, the main chain got way less crowded. Less congestion. Lower fees. It was like removing a traffic jam by building 10 new lanes.
Before Dencun, Ethereum processed about 1.2 million transactions per day. After? That number jumped to 2.1 million. And fees? They fell by 95%.
Why Do Fees Spike Sometimes?
If fees are so low now, why do you still hear horror stories?
Because Ethereum is still a single lane for some things. When something viral happens-like a new token launch, a popular NFT drop, or a flash crash in DeFi-thousands of people try to act at once. That floods the network. The base fee spikes. Suddenly, a simple swap costs $145. A user might see their transaction stuck for 20 minutes. Panic sets in. They pay more. Then it’s over. The network clears. Fees drop again.
These spikes aren’t bugs. They’re features. Ethereum was designed to be secure and decentralized first. That means it prioritizes safety over speed. It doesn’t cut corners. So when demand surges, it doesn’t break-it just gets expensive. And that’s okay. Because most of the time, it’s not crowded.
On February 19, 2025, the WLFI token launch pushed gas prices to over 100 gwei. That’s 37 times the average. But within 48 hours, it was back to 3 gwei. These spikes are rare. They’re loud. But they’re not the norm.
Layer 2 Networks: The Real Answer to High Fees
If you’re still paying high fees on Ethereum mainnet, you’re probably using it wrong.
Layer 2 networks like Arbitrum, Optimism, Polygon, and Base aren’t alternatives to Ethereum. They’re built on top of it. They inherit Ethereum’s security, but do the heavy lifting off-chain. Your ETH, your tokens, your NFTs are still anchored to Ethereum. But your transactions? They happen on a faster, cheaper sidechain.
On Arbitrum, you can swap tokens for $0.01. On Base, it’s $0.003. You can mint 100 NFTs for under $1. These aren’t gimmicks. They’re the future. And they’re why Ethereum’s mainnet fees are so low now-because 8 out of 10 transactions don’t even touch it.
You don’t need to choose between Ethereum and Layer 2. You use both. Bridge your ETH to Arbitrum. Do your daily swaps there. When you need maximum security-say, moving $10,000 into a new protocol-bridge it back. It’s not complicated. Wallets like MetaMask make it one-click.
How to Avoid Paying Too Much
You don’t need to be a coder to save on gas. Here’s what actually works:
- Check the time. Fees are cheapest on weekends, especially Sunday nights. Avoid Monday mornings and during major crypto news events.
- Use a gas tracker. Tools like ETH Gas Station or GasNow show real-time estimates. Wait for the green zone.
- Use Layer 2. If you’re doing anything more than sending ETH, you’re probably better off on Arbitrum or Base.
- Batch your actions. If you’re approving multiple tokens, do it in one transaction. Don’t approve one by one.
- Don’t overpay tips. Most transactions don’t need a tip. Let your wallet auto-set it. Only add a tip if your transaction is stuck.
Most users who follow these five steps cut their fees by 80-95%. It’s not magic. It’s just awareness.
Is Ethereum Still Worth It?
Some say, "Why not just use Solana or BSC? They’re cheaper."
True. But cheap doesn’t mean safe. Solana has had five major outages in two years. BSC is controlled by a single company. Ethereum? It’s run by thousands of independent validators across 100+ countries. It’s survived crashes, hacks, and hype cycles. It’s the only chain with over $50 billion locked in DeFi. That’s not luck. That’s trust.
Ethereum’s fee model isn’t perfect. But it’s evolving. And it’s working. The Dencun upgrade proved the network can adapt without sacrificing security. Layer 2s proved scalability isn’t a fantasy. Together, they’ve turned Ethereum from a bottleneck into a backbone.
Today, gas fees aren’t high. They’re smart. They’re dynamic. And they’re finally working the way they were meant to: expensive when needed, cheap when it’s not. You just need to know when to act-and where to act.
Why are Ethereum gas fees suddenly so low in 2026?
The Dencun upgrade in March 2024 introduced "data blobs," which let Layer 2 networks store transaction data off the main Ethereum chain. This reduced congestion on the base layer by over 80%, causing gas fees to drop by 95%. Combined with the burning of base fees since EIP-1559, Ethereum became dramatically cheaper to use without sacrificing security.
Are Ethereum gas fees ever going to be zero?
No, and that’s intentional. Gas fees prevent spam and reward validators. Zero fees would mean anyone could flood the network with useless transactions, slowing it down for everyone. The goal isn’t zero-it’s predictable and affordable. Today’s average of $0.39 is already far below what’s needed for daily use.
Do Layer 2 networks have their own gas fees?
Yes, but they’re much lower-often 90-99% cheaper than Ethereum mainnet. Layer 2s like Arbitrum and Optimism process transactions off-chain and only post a small summary to Ethereum. This means they use far less gas, and users pay accordingly. You’re not avoiding fees-you’re moving them to a cheaper system.
Can I still get stuck with a $100 gas fee?
Yes, but it’s rare. These spikes happen during viral events-new token launches, NFT drops, or market crashes-when thousands of users try to act at once. The base fee spikes temporarily. If you’re not in a rush, wait 10-30 minutes. Most spikes last less than an hour. Tools like ETH Gas Station can warn you before you act.
Should I move all my assets to a Layer 2?
For daily use? Absolutely. Swap, stake, lend, and trade on Arbitrum or Base. But keep a small amount on Ethereum mainnet for bridging or when you need maximum security-like moving large sums into new protocols. Layer 2s are safe, but Ethereum mainnet is the gold standard. Use both.
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