Average Ethereum mainnet gas fees have fallen to 3 gwei, the lowest level since the network's early days, as the migration of activity to Layer 2 networks dramatically reduces competition for mainnet block space. Simple transfers now cost less than $0.10.
The decline is a direct consequence of the Dencun upgrade's blob transactions, which give Layer 2s cheap data availability on Ethereum. With most user activity happening on L2s, mainnet demand has shifted toward high-value settlement and DeFi operations.
While lower fees benefit remaining mainnet users, the reduction has significant implications for ETH tokenomics. The EIP-1559 burn mechanism destroys less ETH when fees are low, and Ethereum has returned to net inflationary issuance since late 2025.
The shift has sparked debate about Ethereum's long-term value accrual model. Some argue that low L1 fees undermine ETH's monetary premium, while others contend that the security and settlement layer role will become more valuable as the L2 ecosystem grows.
Developers are exploring restaking and shared sequencing as additional revenue streams for the Ethereum base layer, potentially offsetting the decline in gas fee revenue while maintaining the network's economic security model.
