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Ethereum hits record transaction volume with fees at all-time lows after Dencun upgrade

Protocol Fundamentals
23 May 2026
Crypto Briefing
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Neutral
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Ethereum's Layer 1 network reached a new peak of 1.87 million daily transactions by the end of 2025, surpassing previous records while transaction fees dropped to historic lows around $0.21. This shift followed the March 2024 Dencun upgrade, which introduced proto-danksharding, allowing Layer 2 rollups to post data more cheaply and easing congestion on the main chain. Although this has boosted network activity and accessibility, it has also reduced Ethereum's fee revenue and deflationary ETH burn, as most fees now go to Layer 2 networks rather than Ethereum Layer 1. Investors face a trade-off between increased adoption and diminished economic value capture on the main chain.

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