In a technical evolution and broad ecosystem trend, the average monthly gas price of Ethereum dropped to an all-time low in March 2025.
The price of gas—measured in gwei—averaged just 2.71 for the month, a really astounding decline in what had been a constantly rising price and a sign—as unfathomable as it may be—that the Ethereum network isn’t as busy as it once was. And just for clarity, that 2.71 number broken down means that for each transaction on Ethereum, a user would have had to pay 2.71 gwei, or 0.00000000271 ETH, which at the time transacted at around $1,800.
Monthly Ethereum gas price hits ATL in March
In March, the monthly #Ethereum gas price reached an average of 2.71 gwei, which is roughly six times lower than at the end of 2024.
This became the lowest monthly level in history, due to raised gas limits for the first time since… pic.twitter.com/FdMBTkHrtF
— CryptoRank.io (@CryptoRank_io) April 10, 2025
The latest low in gas prices is nearly a sixfold decrease from the average prices seen at the end of 2024. While lower fees are typically a win for users, the context behind this decline is more complex. It is not just a sign of better efficiency; gas prices are also down because the Ethereum mainnet is experiencing something of a drought. Since the smart contract and DApp year 2020, user activity on Ethereum has actually declined.
Raised Gas Limits and Network Underutilization
Ethereum gas limit raises recorded low gas prices. One of the primary drivers behind March’s record-low gas price was the increase in Ethereum’s gas limit—the total amount of computational work that can be performed in a block. This was the first time Ethereum’s gas limit had been raised since 2021, and the change allowed more transactions to be processed per block without incurring higher costs.
Although this change escalated the amount of transactions included in each block, it also provided more room per block for users to transmit their kinds of transactions. This was very much in line with the increasing user demand for the kinds of transactions that would not just fill blocks but also make it very worthwhile for miners to produce the blocks.
The ideal conditions for gas prices to fall have emerged from this technical shift, not to mention the relatively lifeless on-chain activity that has persisted for quite some time. Obviously, when chain activity is low, net fee revenue for miners and validators is low as well. And now, with the main net fee revenue drivers — DeFi protocols and on-chain NFT activity — in a summer slump, the only way for median gas prices to go is down, which is what they have done.
This is time for experimentation and without doubt for better conditions for what is something like an overarching onset of default affordability for Ethereum’s decentralized applications, or dApps.
A Four-Year Plateau in Network Activity
Maybe it is more indicative than the drop in gas prices that the stagnation we seem to be in has also affected Ethereum’s key usage metrics. Since 2021, the number of active Ethereum addresses has been mostly flat. What long-term growth we seem to have achieved has mostly come from bull markets, major token launches, or some other period of speculative mania—all things that coincide with price surges, by the way. The network has gotten more user-friendly, but it seems to be getting more user-friendly just as the users are starting to leave.
Aside from these occurrences, Ethereum’s basic activity has experienced very little initial organic growth. This might convey that the network is not reducing its evolution in the way we would expect or hope it to for an underlying layer in the app development space. Even the arrival of Layer 2 solutions, recent protocol upgrades like the Merge, and the later Dencun update do not seem to be pushing the undercurrents of basic Layer 1 Ethereum activity. Listing these events might suggest that the picture here is somewhat stagnate.
4 years of stagnant Ethereum activity
Since 2021, the number of active #Ethereum addresses has remained flat.
Spikes in activity have occurred, but they align with periods of notable price movement. pic.twitter.com/S0PPZ9g6Ew
— CryptoRank.io (@CryptoRank_io) April 10, 2025
By contrast, the Layer 2 networks like Arbitrum, Optimism, and Base are experiencing an astonishing uptick in both usage and revenue. As users looking for lower fees and faster transactions continue to turn to these networks, it’s important to remember that these alternatives are also part of Ethereum’s modular approach to scaling and consequently are resulting in less activity on the mainnet.
A Double-Edged Development
From one perspective, March found Ethereum’s gas prices at an all-time low. That can be interpreted as scalability and usability succeeding. Network accessibility is up, and we are on the brink of adoption. From another perspective, though, those low prices are a warning sign. They mean demand for the base layer of Ethereum is down, and it’s not clear what will revive it.
As developers and users move to Layer 2 ecosystems and gas fees are at or near historic lows, Ethereum could be transitioning to a new phase—one in which the mainnet becomes a passive settlement layer while most of the action happens elsewhere.
Too many developers and users have already left to stay on the Ethereum mainnet when they can do what they want on a Layer 2 cheap enough that they need not worry about gas fees.
The next few months will be critical for figuring out whether Ethereum can invigorate its base of core users or whether it will keep sliding along a path of dwindling on-chain activity.
For now, the record low gas price in March is less a cause for celebration and more a reflection of the current state of the network: yes, it’s more efficient, but also less used.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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