In the ever-evolving world of cryptocurrency, one metric often speaks louder than price charts: network transaction costs. Recently, Ethereum’s average gas fee has plummeted to just $1.12 per transaction, with base fees hitting a low of 5 Gwei—the cheapest daily average since October 18 of last year. For context, during the peak of the last bull cycle driven by DeFi and NFT mania, users routinely paid 100–200 Gwei or more to get their transactions confirmed.
This dramatic drop has sparked a critical question across the crypto community: If we're in a bull market, why are Ethereum fees so low? After all, high network activity and surging demand typically go hand-in-hand with rising prices. Yet here we are—prices have seen some recovery, but congestion on the Ethereum network remains minimal.
Let’s explore the two key reasons behind this puzzling trend and what it could mean for investors moving forward.
Market Pullback and Reduced On-Chain Demand
One of the most direct explanations for lower gas fees lies in reduced user demand. According to data from analytics platform Santiment, crypto markets often swing between extremes of euphoria and despair—and these emotional shifts are clearly reflected in on-chain behavior.
Historically, Ethereum transaction fees spike when asset prices rise. More investors enter the market, triggering a wave of buys, swaps, minting, and staking activities across decentralized applications (dApps). Conversely, when prices correct—as they have over the past six weeks—on-chain activity cools down significantly.
👉 Discover how low fees can create high-value opportunities right now.
With fewer traders rushing to execute deals, the network becomes less congested, allowing miners and validators to process transactions at a fraction of previous costs. While this may seem bearish at first glance, Santiment suggests there's an upside: a thin layer of transaction pressure could signal that a reversal is near.
When demand dries up temporarily, it often creates a coiled-spring effect. Once sentiment turns positive again, even modest inflows can trigger rapid price movements—especially if liquidity is already positioned on-chain during this quiet phase.
So while the market appears calm, it might actually be gathering momentum beneath the surface.
The Rise of Restaking: Less Activity, More Capital Efficiency
Beyond macro market trends, a structural shift within Ethereum’s ecosystem is also contributing to lower gas usage: the rise of restaking.
In previous cycles, DeFi and NFTs drove explosive growth in transaction volume. Users were constantly interacting with protocols—swapping tokens, providing liquidity, minting digital art, or leveraging yield strategies. Each interaction required a transaction, and often several. This constant churn kept gas prices elevated.
Today, however, a new paradigm is taking hold: capital efficiency through passive yield generation. Platforms like EigenLayer have popularized the concept of restaking, where users stake their ETH and then reuse that same stake to secure additional networks or earn extra yields—without needing to transact frequently.
EigenLayer’s total value locked (TVL) recently surpassed $16 billion, locking up vast amounts of ETH in long-term, low-interaction positions. In fact, approximately 26% of Ethereum’s total 122 million ETH supply is now staked on the Beacon Chain. These funds aren’t sitting idle—they’re earning rewards—but they’re not generating daily transactions either.
This shift means more capital is working silently in the background, reducing the need for frequent on-chain interactions. As restaking protocols expand and more liquid staking derivatives emerge, this trend is likely to continue—keeping gas fees low even during periods of price appreciation.
Why Low Fees Could Be a Hidden Opportunity
While low transaction costs might suggest weak demand, they can also represent a strategic window for proactive investors.
When gas fees are low:
- Participating in airdrops becomes cost-effective – Many upcoming protocols reward early users who interact with their testnets or perform specific tasks. With minimal fees, users can build multiple “farming” accounts without burning through profits.
- Building on-chain reputation gets cheaper – Whether you’re engaging with governance systems, Layer 2 ecosystems, or identity protocols like ENS or Gitcoin Passport, now is an ideal time to establish presence and credibility.
- Experimentation carries less risk – Newcomers can explore DeFi platforms, try out wallet integrations, or bridge assets across chains without worrying about wasting money on failed transactions.
In short, low fees lower the barrier to entry, enabling broader participation and setting the foundation for future activity spikes once confidence returns.
👉 Start building your on-chain presence today with minimal costs.
Frequently Asked Questions (FAQ)
Q: Does low gas fee mean Ethereum isn’t healthy?
A: Not necessarily. Low fees reflect reduced congestion, not declining utility. They can actually improve user experience and accessibility—key for long-term adoption.
Q: Can we still be in a bull market if gas prices are low?
A: Yes. Early-stage bull markets often begin before on-chain activity surges. Price momentum can precede increased usage as capital flows in ahead of broader retail participation.
Q: What is restaking and how does it affect Ethereum?
A: Restaking allows users to reuse their staked ETH to provide security to other protocols (like EigenLayer), earning additional yield without unstaking. It reduces transaction frequency but increases capital efficiency.
Q: Should I wait for higher fees before investing?
A: Waiting for high fees might mean missing early opportunities. Low-fee environments are ideal for setting up positions ahead of future demand spikes.
Q: Are NFTs and DeFi dead if people aren’t transacting much?
A: No. Both sectors are evolving. NFTs are shifting toward utility and identity; DeFi is focusing on sustainability and institutional-grade infrastructure rather than speculative farming.
Looking Ahead: A Quiet Foundation for the Next Surge
The current state of Ethereum—modest fees, steady staking growth, and rising restaking adoption—paints a picture of maturation rather than stagnation. The ecosystem isn't inactive; it's simply operating differently.
Instead of chaotic bidding wars for NFTs or yield farms requiring constant rebalancing, we’re seeing longer-term capital commitment, improved scalability, and greater efficiency thanks to upgrades like EIP-4844 and expanding Layer 2 adoption.
These developments mean Ethereum can support future demand spikes without repeating the exorbitant gas fees of 2021. That’s not a sign of weakness—it’s progress.
👉 See how you can leverage today’s low-cost environment to prepare for tomorrow’s surge.
Final Thoughts
So, is this really a bull market? The answer may lie not in today’s gas fees, but in what smart investors are doing while they’re low.
With core keywords like Ethereum gas fees, restaking, EigenLayer, on-chain activity, DeFi trends, crypto bull market 2025, low transaction costs, and Beacon Chain staking shaping the narrative, one thing is clear: opportunity often hides in plain sight—especially when everyone else is waiting for obvious signals.
Now might be the perfect time to act quietly, build strategically, and position yourself for what comes next.