For years, using Ethereum [ETH] felt expensive and out of reach for many people.
During the 2021 bull market and the 2024 NFT boom, even a basic transaction could cost around $50, while more complex actions often cost much more.
These high fees showed how popular Ethereum had become, but they also kept many users out.
That situation has now changed. As of January 2026, Ethereum gas fees have dropped to $0.01, per Etherscan data.
Source: Etherscan
This drop isn’t because fewer people are using Ethereum. It’s the result of major technical changes.
Following the Fusaka upgrade in late 2025, the rollout of PeerDAS, and widespread Layer 2 adoption, Ethereum has cleared congestion on its main network.
What was once a costly, crowded system now works as a fast and efficient settlement layer.
Is Ethereum the new Solana?
This shift has also changed Ethereum’s competition with Solana [SOL]. Solana was known for being cheap and fast, but Ethereum now offers similarly low fees.
As a result, the comparison is no longer just about cost.
Ethereum focuses on security and decentralization, while Solana prioritizes speed with a more demanding setup. Solana is still faster for certain use cases, but Ethereum’s low fees remove the main reason users once left.
However, lower fees do come with a trade-off.
Ethereum burns part of every transaction fee, and when fees were high, the ETH supply often shrank. With fees now very low, the burn has slowed, and ETH is slightly inflationary for the moment.
The most important signal is usage.
On the 17th of January 2026, Ethereum processed 2.6 million transactions in a single day, a new record. In the past, this level of activity would have caused congestion and high fees.
This time, the network ran smoothly, showing that Ethereum can now handle very high usage without becoming expensive again. This fundamental strength is beginning to reflect in the markets.
Market reaction
At press time, ETH was trading at $3,319.87, maintaining a steady climb with a 0.62% gain in the last 24 hours. In contrast, its primary rival, SOL, is feeling the heat.
Despite its own robust ecosystem, SOL was currently trading at $142.26, down 1.23% over the same period.
In fact, Ethereum co-founder Vitalik Buterin also recently declared that the original Web3 architecture, first outlined in 2014 and long considered a distant roadmap, is now a functional reality.
All in all, in 2026, Ethereum isn’t just scaling; it’s coming home.
Final Thoughts
- Ethereum has finally become cheap enough for everyday use without sacrificing scale or security.
- This shift is structural, not temporary, as upgrades like Fusaka, PeerDAS, and mature Layer 2s have permanently unclogged the mainnet.