Ethereum gas fees remain unusually low despite record L1 throughput, enabling high on‑chain activity without fee friction. This Ethereum gas fees regime—supported by EIP‑1559 and Layer‑2 settlement—creates headroom for further ETH price discovery and sustained DeFi/NFT growth.
ETH throughput >2M daily tx and ~700k active addresses with fees still near multi‑year lows
Capital appears rotating from Bitcoin to Ethereum, pushing the ETH/BTC ratio above 0.04.
Median gas hit sub‑1 gwei this week (0.396 gwei and 0.432 gwei on August 16–17), while Ethereum TVL approaches $100B.
Ethereum gas fees stay low as ETH nears highs — read how protocol upgrades and L2s enable scaling, what metrics matter, and why this matters for ETH price action.
What is causing Ethereum gas fees to stay low despite rising demand?
Ethereum gas fees are low because recent protocol upgrades and increasing Layer‑2 settlement have materially increased effective capacity, so on‑chain demand (transactions and active addresses) no longer maps one‑for‑one to fee spikes. EIP‑1559, L2 batching, and horizontal scaling reduce per‑transaction settlement costs while preserving security.
How are on‑chain metrics changing and what do they mean for ETH price?
Daily transactions have surged past 2 million and active addresses hover near 700k, yet median gas remains compressed. This decoupling means the network can absorb more economic activity without the fee blowouts that previously capped rallies. As a result, ETH can test price discovery levels with less friction from transaction costs.
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Protocol-level fee mechanisms and L2 settlement flows reduced on‑chain competition for block space during those days, pushing median gas below 1 gwei. This reflects increased batching and settlement efficiency across aggregators and rollups. Source: Dune (data reference, plain text).
Yes — the ETH/BTC ratio breaking above 0.04 indicates relative strength in ETH versus BTC, often signaling capital rotation. However, traders should combine ratio signals with on‑chain and macro indicators for confirmation. Source: Token Terminal (data reference, plain text).
Potentially. If scaling improvements and Layer‑2 adoption continue, the network can sustain high throughput while keeping fees low, lowering one historical constraint on ETH price rallies.
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Source: https://en.coinotag.com/ethereum-eth-low-gas-despite-high-throughput-could-indicate-capital-rotation-from-bitcoin/