Ethereum reached new all-time highs in August 2025 while median gas fees stayed near 4 gwei, signaling improved scalability and cheaper transactions; this shift may accelerate DeFi and Layer 2 adoption and increase on‑chain activity without compromising security.
Ethereum posts new ATH while gas fees remain historically low
Lower median gas (≈4 gwei) reduces costs for small DeFi transactions and boosts usability.
Data from Hildobby’s Dune Analytics (August 2025) shows price-growth decoupled from fee spikes.
Ethereum all-time highs with low gas fees drive DeFi growth and Layer 2 adoption — read how to capitalize on lower costs today.
How did Ethereum reach a new ATH while gas fees stayed low?
Ethereum reached new all-time highs with low gas fees due to improved scaling and lower median gas costs. Network upgrades and broader Layer 2 usage have reduced on-chain congestion. This combination increased investor confidence and developer activity without pushing fees to previous peak levels.
Why are Ethereum gas fees low despite an ATH?
Multiple factors explain the low gas environment. First, rollups and Layer 2 solutions have migrated high-frequency transactions off‑chain. Second, protocol upgrades such as EIP-4844 (proto-danksharding) lowered calldata costs for rollups. Third, improved client performance and better fee market dynamics reduced short-term spikes.
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Hildobby’s Dune Analytics reported a median gas fee around 4 gwei in August 2025. Industry figures including Vitalik Buterin and data analysts noted this decoupling as a sign of growing scalability. Lower fees encourage smaller-value DeFi activity and broaden the addressable user base.
Lower fees improve economics for small trades and microtransactions. Developers can offer lower-fee UX without subsidizing gas. DeFi protocols may see higher user retention and increased transaction counts as the cost barrier drops.
Analysts expect total value locked (TVL) growth if fee levels persist. Reduced per-transaction costs also enable new business models like on-chain micro‑payments and gamified finance products.
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Source: https://en.coinotag.com/ethereums-new-ath-with-historically-low-gas-fees-could-boost-defi-and-layer%E2%80%912-adoption/