Ethereum Gas Fees vs Other Platform Costs in 2025
Feb, 2 2026
Back in 2021, paying $80 to swap two tokens on Ethereum felt normal. By 2024, it was common to see $150 just to mint an NFT. Today, in early 2025, that same swap costs under Ethereum gas fees of 40 cents. The change isn’t just small-it’s revolutionary. The Dencun upgrade didn’t tweak the system. It rebuilt it. And now, Ethereum’s cost structure is more competitive than it’s ever been.
How Ethereum Gas Fees Work Now
Ethereum gas fees aren’t a fixed price. They’re dynamic. Every action on the network-sending ETH, swapping tokens, interacting with a smart contract-uses computational power. That power is paid for in gas. The cost is calculated using this simple formula: (Base fee + Priority fee) × Gas limit = Total fee. The base fee is the core cost. It’s automatically adjusted every block based on how busy the network is. If demand goes up, the base fee rises. If it drops, the base fee falls. And here’s the key: the base fee gets burned. It doesn’t go to miners or validators. It’s destroyed. That means less ETH in circulation over time, which can help with scarcity. The priority fee is your tip. If you want your transaction to go through faster, you add a little extra. Think of it like rush delivery. Most users don’t need to pay much here anymore. With network congestion down, priority fees are often under 0.5 gwei. Gas is measured in gwei. One gwei equals 0.000000001 ETH. A basic ETH transfer uses 21,000 gas units. At today’s average gas price of 2.7 gwei, that’s 21,000 × 2.7 = 56,700 gwei, or 0.0000567 ETH-about 15 cents. For more complex actions, like staking or using a DeFi protocol, gas limits can jump to 200,000 or even 500,000 units. But even then, the total cost rarely exceeds $1.50.How Much Have Fees Really Dropped?
The numbers tell the story. In February 2024, the average Ethereum transaction cost was $4.60. By February 2025, it’s $0.41. That’s a 91% drop. Simple token swaps? Down from $86 to $0.39. NFT mints? From $145 to $0.65. Even during peak times-like when a popular NFT collection drops-the spike rarely pushes fees past $5. That’s a far cry from the $50+ spikes we saw in 2021 and 2023. The reason? Layer 2s. Platforms like Arbitrum, Optimism, and Polygon now handle over 70% of Ethereum’s transaction volume. They process transactions off-chain, then bundle them back onto Ethereum for final settlement. This reduces congestion on the main chain, which keeps base fees low. And it’s working. Daily Ethereum network fees have fallen from $23 million in late 2023 to just $7.5 million in early 2025. That’s a 70% reduction in total network costs.Ethereum vs Solana: The Real Cost Comparison
Solana still claims to be cheaper. And technically, yes. A Solana transaction averages $0.00025. That’s almost nothing. But here’s what most people miss: Solana’s low cost comes with trade-offs. Solana has had over a dozen major network outages since 2022. In 2023, it went down for 18 hours after a validator overload. Ethereum, even at its busiest, has never gone offline. That reliability matters. Ethereum’s ecosystem is also vastly larger. Over 80% of DeFi activity still runs on Ethereum or its Layer 2s. Solana has fewer protocols, less liquidity, and far less developer activity. You might save a fraction of a cent on Solana, but you risk losing access to your funds if the network crashes. And while Solana’s fees are low, they’re not always predictable. During high-volume events-like a new token launch-Solana fees can spike to $1 or more. Ethereum’s base fee system makes spikes far less extreme.
Layer 2s Are the Real Winners
The biggest shift in 2025 isn’t Ethereum getting cheaper-it’s that Layer 2s made Ethereum usable for everyday people. Arbitrum and Optimism now process over 10 million transactions daily. Their fees? Around 1 to 5 cents. That’s cheaper than most mobile data plans. And because they inherit Ethereum’s security, you’re not sacrificing safety for savings. Polygon zkEVM and Linea are also gaining traction. Both offer sub-1-cent fees and fast finality. Many wallets, including MetaMask and Coinbase Wallet, now auto-detect the cheapest route. If you send ETH from MetaMask, it might route you through Arbitrum without you even noticing. The result? People are transacting more. Small DeFi swaps, micro-payments, and even token-gated community access are now feasible. On Ethereum in 2023, sending $10 worth of a token might cost $5 in fees. Now? You can send $10 for 20 cents and still have change.When Do Fees Still Spike?
Don’t get fooled. Ethereum isn’t always cheap. During major events-like a new NFT drop, a popular protocol launch, or a big whale moving funds-fees can jump. On February 19, 2025, a major DeFi protocol’s token launch caused gas prices to hit 50 gwei. Swaps cost $50. That’s rare, but it happens. The difference now? You know it’s coming. Wallets show real-time congestion maps. Tools like Etherscan’s Gas Tracker and GasNow tell you when fees are low. Most users now wait 15-30 minutes during off-peak hours-late at night or early Sunday morning-to save 30-50%. It’s not magic. It’s timing. And it’s easy to learn.
How to Save on Ethereum Fees in 2025
You don’t need to be a coder to save money. Here’s what works:- Use Layer 2s. Send ETH to Arbitrum or Optimism first. Most wallets let you bridge with one click.
- Check gas prices before you act. If it’s above $1, wait. It’ll drop.
- Set custom gas limits. Don’t accept the default. For a simple transfer, 21,000 is enough. For a swap, 100,000 is usually safe.
- Avoid weekends. Friday nights and Sunday afternoons are busiest. Weekdays, especially Tuesday and Wednesday, are quietest.
- Use a wallet with smart fee suggestions. MetaMask, Rabby, and Coinbase Wallet now auto-adjust priority fees based on network load.
What About Other Blockchains?
Solana, Avalanche, and BNB Chain all offer lower base fees. But they’re not better. They’re different. BNB Chain is fast and cheap, but it’s centralized. Over 70% of its validators are controlled by Binance. That’s fine if you’re trading, but not if you’re holding long-term. Avalanche has low fees and good speed, but its ecosystem is smaller. Fewer DeFi protocols. Less liquidity. More risk. Cosmos and Aptos are rising, but they’re still experimental. Their tokenomics aren’t proven. Their security hasn’t been tested under real stress. Ethereum’s advantage isn’t just cost anymore. It’s trust. It’s scale. It’s the fact that billions of dollars are locked in its smart contracts, and it hasn’t been hacked.The Future of Ethereum Fees
The Dencun upgrade was just the beginning. The Ethereum Foundation is already testing further optimizations for 2026-like proto-danksharding, which will make Layer 2s even cheaper. Enterprise adoption is growing. Companies like Visa and Mastercard are testing Ethereum-based payment rails. Why? Because the fees are now low enough to make microtransactions viable. The bottom line? Ethereum isn’t just surviving the competition. It’s winning. Not because it’s the cheapest. But because it’s the most reliable, the most secure, and now-the most affordable.If you’ve avoided Ethereum because of fees, it’s time to try again. The network you once thought was too expensive is now the most cost-effective way to interact with decentralized finance.
Why did Ethereum gas fees drop so much in 2025?
The drop was caused by the Dencun upgrade, which introduced proto-danksharding-a feature that allows Layer 2 networks to store transaction data more efficiently and cheaply. This reduced congestion on Ethereum’s main chain, lowering base fees by over 90%. Combined with widespread adoption of Layer 2s like Arbitrum and Optimism, transaction costs fell from an average of $4.60 in early 2024 to just $0.41 in early 2025.
Are Ethereum gas fees cheaper than Solana’s?
Solana’s base fees are technically lower-around $0.00025 per transaction. But Ethereum’s average fee of $0.41 is far more stable. Solana has suffered multiple network outages since 2022, and during high demand, its fees can spike to over $1. Ethereum’s EIP-1559 mechanism ensures fees adjust predictably, and Layer 2s bring costs down to pennies while keeping security intact.
What’s the best way to reduce Ethereum gas fees?
Use a Layer 2 like Arbitrum or Optimism. Bridge your ETH there first, then do your swaps or NFT mints on the Layer 2. You’ll pay less than 10 cents per transaction. Also, avoid peak hours-weekends and late nights-and use wallet tools like MetaMask to set custom gas limits and priority fees. Waiting 15-30 minutes during off-peak times can cut your cost by half.
Do I need to understand gwei to use Ethereum?
No. Modern wallets like MetaMask, Rabby, and Coinbase Wallet show fees in USD or your local currency. You don’t need to calculate gwei manually. But knowing that 1 gwei = 0.000000001 ETH helps you understand why fees change. A gas price of 5 gwei is cheap; 50 gwei is expensive. Most wallets now auto-adjust this for you.
Are Ethereum gas fees taxable?
In most countries, including New Zealand, the US, and the EU, gas fees are not taxed as income. They’re treated as a network service fee, like a bank transfer charge. However, if you sell crypto and pay gas to do so, the fee may be included in your cost basis for capital gains calculations. Always check local tax rules, but generally, gas fees themselves aren’t taxable events.
Can I still get scammed with low gas fees?
Yes-low fees don’t mean low risk. Scammers still use fake tokens, phishing links, and malicious smart contracts. Just because a transaction costs 10 cents doesn’t mean it’s safe. Always double-check contract addresses. Use trusted platforms. Never approve unlimited token spending unless you trust the project. Fees are cheaper, but your caution shouldn’t be.
Akhil Mathew
February 3, 2026 AT 03:25Man, I remember paying $80 just to swap ETH for DAI back in 2021. Now I do five swaps in the time it takes to boil an egg and it costs less than my morning coffee. Ethereum didn’t just get cheaper-it got smart. Layer 2s are the real MVPs here.