Gas fees on the Ethereum layer-1 blockchain have plummeted to just 0.067 gwei following a period of market stagnation triggered by October’s dramatic market crash.

The average cost for a swap on Ethereum stands at merely $0.11, while non-fungible token (NFT) transactions incur a fee of $0.19. Additionally, transferring a digital asset to another blockchain costs $0.04, and on-chain borrowing is priced at $0.09, based on data from Etherscan.

Ethereum’s network fees recently peaked at 15.9 gwei on October 10, during a market flash crash that saw many altcoins lose over 90% of their value in just one day. By October 12, transaction fees dropped to 0.5 gwei, remaining consistently low throughout October and November.

Ethereum layer-1 gas prices over the last month.
Source: Etherscan

While the low transaction fees are advantageous for users, industry analysts express concern that such low fees could indicate deeper issues within Ethereum’s ecosystem.

Ethereum’s revenue has diminished:
Transaction costs on the Ethereum layer-1 spiked to over $150 during the 2021 bull run but saw a drastic reduction post the March 2024 Dencun upgrade, which lowered fees for the network’s layer-2 scaling solutions. This change has led to a staggering 99% drop in Ethereum’s revenue.

Ethereum layer-1 network fees 2023-2025.
Source: Token Terminal

Critics argue that such sustainable low fees pose serious financial and security risks, as they jeopardize incentives for validators and miners necessary for securing the blockchain. The decline in fees and revenues may suggest that users are venturing away from Ethereum, especially given the popularity of layer-2 networks.

Despite expanding transaction capabilities through layer-2, these networks also compete against Ethereum itself, leading to a potential cannibalization of its revenue.