Ethereum, the second-largest cryptocurrency by market capitalization, is experiencing a remarkable surge in transaction activity alongside an unprecedented drop in costs. As of mid-January 2026, the seven-day moving average of daily transactions has soared to nearly 2.5 million, nearly double the volume recorded just a year prior.
This uptick in usage comes with a significant reduction in gas fees, which have hit record lows. Recent data indicates that average transaction fees are around $0.15, with some estimates reporting fees as low as $0.04 for swaps conducted on the platform. Such low-cost transactions have made Ethereum increasingly accessible, particularly for smaller users who previously faced high costs during busy periods.
The increase in transactions began following the Fusaka hard fork, which went live seven weeks prior. This major upgrade laid the groundwork for Ethereum’s new biannual upgrade schedule and introduced PeerDAS, enhancing the network’s efficiency. Additionally, recent changes to blob parameters have played a crucial role in lowering costs associated with Layer 2 solutions.
Gas Fees Plummet Thanks to Strategic Changes
Alongside the upgrade, Ethereum’s block gas limit was raised from 45 million to 60 million in late November, effectively doubling the limit since the beginning of 2025. With a significant amount of execution moving to Layer 2 networks, the pressure on mainnet blockspace has eased, allowing for lower mainnet fees even with rising overall transaction activity.
Stablecoin transactions have also reached new heights, accounting for approximately 35% to 40% of all Ethereum transactions. This spike in stablecoin activity is a contributing factor to the increased network engagement, with Standard Chartered’s Global Head of Digital Assets Research, Geoffrey Kendrick, optimistically stating that “2026 will be the year of Ethereum.”
Heightened Staking Activity Signals Growth
In another indication of burgeoning interest, over 36 million ETH is currently locked in staking contracts, representing roughly 30% of the circulating supply. The entry queue for staking has risen to over 2.5 million ETH, the highest level seen since August 2023, reflecting strong demand within the ecosystem. Conversely, the exit queue for stakers has dwindled to nearly zero, further demonstrating confidence in the network.
Analysts from Standard Chartered have set an ambitious price target of $40,000 for Ethereum by the end of 2030. This projection suggests a possible increase of around 1,100% from current prices, with Ethereum trading around $3,300 as of January 13, 2026. Many believe Ethereum may even outperform Bitcoin within the same period, especially considering the growth of stablecoins and the burgeoning tokenization of real-world assets.
Citigroup predicts stablecoin issuance could expand from approximately $280 billion today to as much as $4 trillion by the end of the decade. With Ethereum currently housing over 50% of the stablecoin market, the platform stands to benefit significantly from this growth.
The Ethereum ecosystem is robust, with $75.32 billion locked within its various protocols. Should the anticipated stablecoin issuance occur, that figure could more than triple as new assets flood the market. Ethereum co-founder Vitalik Buterin echoed similar sentiments, emphasizing the community’s commitment to ensuring that 2026 tackles fundamental issues of personal autonomy within the crypto space.
As Ethereum continues to lower transaction fees while exponentially increasing its activity, the coming year looks poised to unlock substantial value for both new and existing participants in the ecosystem.
