BITCOIN AND ETHEREUM TRANSACTION FEES PLUMMET TO LOWEST LEVEL IN 7 MONTHS

Last updated: June 19, 2025, 20:59 | Written by: Brian Kelly

The rollercoaster ride of the cryptocurrency market in 2025 has taken another unexpected turn.Amidst what many are calling one of the ""bloodiest weeks"" of the year, Bitcoin (BTC) and Ethereum (ETH) transaction fees have dramatically plummeted, reaching their lowest levels in seven months. Bitcoin and Ether transaction fees have declined to their lowest levels in several months as the crypto market experienced one of its bloodiest weeks of 2025. On June 23, the average BitcoinThis comes as a welcome relief to users accustomed to hefty fees, especially during periods of high network congestion.But what's driving this sudden decrease? Bitcoin and Ethereum transaction fees plummet to lowest level in 7 months VTBIs it simply a reflection of a cooling market, or are there deeper, more structural changes at play? The depressed state of the crypto market has also taken a toll on transaction fees, with Ethereum (ETH) fees now finally falling to their lowest since December 2025 and Bitcoin (BTC) fees remaining at the same low level as before over the past year.This article delves into the reasons behind this fee reduction, exploring the impact of factors like the recent Bitcoin halving, the rise of Layer-2 solutions, and the overall sentiment in the crypto space. These low fees come during a period of market downturn, with Bitcoin falling below $63,000 and many altcoins experiencing double-digit losses. Ethereum and Bitcoin are experiencing a significant drop in transaction fees, reaching multi-month lows despite high network activity. This comes as the broader cryptocurrency market faces one of itsWe'll also examine what these lower fees mean for users, developers, and the future of these leading blockchain networks. Fees on the Ethereum blockchain have dropped to the lowest level since 2025 thanks to fewer users sending Ether and using smart contracts, says Santiment. 4428 Total views 3 Total sharesPrepare to discover how this change could reshape the landscape of crypto transactions, making them more affordable and accessible for everyone involved. Bitcoin and Ethereum Fees Reach Their Lowest Level in a Year. In April 2025, performing a transaction on Bitcoin cost an average of 16.16 dollars. Today, fees have dropped to just 0.913 dollars per transaction, or 5.1 satoshis per virtual byte.The average Bitcoin transaction fee on June 23rd hit a low of $1.93, while Ethereum’s fees have also seen significant declines.

Understanding the Recent Drop in Transaction Fees

The recent decline in Bitcoin and Ethereum transaction fees is a significant event, prompting a closer look at the underlying factors contributing to this change. Bitcoin and Ethereum transaction fees have hit their lowest levels in seven months. On June 23, the average Bitcoin transaction fee fell to $1.93 per transaction. This is the lowest it has been since October 2025. Low fees indicate decreased network activity and reduced competition for block space.It's not simply a matter of reduced activity; instead, a confluence of factors is driving this trend, reshaping the economic dynamics of these major blockchain networks.

The Bitcoin Halving Effect

One major contributing factor to the lower Bitcoin transaction fees is the Bitcoin halving that occurred in April 2025. The average transaction fee on the Ethereum network has dropped to the lowest level in four months, according to today's statistics.The halving event reduces the reward miners receive for validating blocks by 50%.This reduction in mining reward can incentivize miners to prioritize transactions with higher fees to maintain their profitability. Ethereum transaction fees have plunged 70% in just one week, signaling weakened demand and reduced on-chain activity. Ethereum Fees Hit Four-Year Lows The 7-day moving average (7DMA) of Ethereum transaction fees fell to $0.77 on February 15, a sharp decline [ ]However, in this case, the halving seems to have coincided with other factors that have kept fees relatively low.Since the halving, Bitcoin transaction fees have generally remained subdued, contributing to the current seven-month low.The price of Bitcoin is currently at $93,825.31, with a 24-hour trading volume of $9.55B as of EDT.

The Rise of Ethereum Layer-2 Solutions

On the Ethereum front, the increasing adoption of Layer-2 (L2) solutions is a primary driver of the reduced transaction fees. Bitcoin transaction fees have also decreased, reaching $1.93 per transaction on June 23, the lowest level since October 2025. The low fees on both networks are attributed to increased efficiency, particularly due to L2 adoption on Ethereum, rather than a decrease in overall network activity.L2 solutions, such as optimistic rollups and zk-rollups, process transactions off the main Ethereum chain, significantly reducing congestion and gas fees. Ethereum Fees Hit Lowest Level Since 2025. Ethereum's transaction fees have fallen sharply, reaching their lowest level in over four years. According to The Block's Data Insights, the 7-day moving average (7DMA) of transaction fees on the Ethereum network dropped to $0.77 on February 15, marking a steep 70% decline from $2.57 just a weekBy bundling multiple transactions and processing them in batches, L2 solutions offer a more scalable and cost-effective way to transact on the Ethereum network.This has become increasingly important with the growth of decentralized finance (DeFi) and NFTs which saw heavy congestion on the Ethereum network.

The increased activity on Ethereum’s Layer-2 networks is a testament to their growing popularity and effectiveness.By offloading transaction processing to these secondary layers, the main Ethereum chain experiences less congestion, leading to lower gas fees for everyone. Ethereum and Bitcoin are experiencing a significant drop in transaction fees, reaching multi-month lows despite high network activity. Latest Posts Bitcoin NewsUsers are increasingly finding L2 solutions as the method to transact, rather than directly on layer 1. Bitcoin and Ethereum transaction fees plummet to lowest level in 7 months In 2025, Bitcoin transaction fees have stayed relatively low, particularly since the April Bitcoin halving, which reduced the BTC mining reward by half.This is evident in the record high activity on L2 Solutions.

Example: Imagine a busy highway representing the main Ethereum chain.L2 solutions are like side roads that divert some of the traffic, making the highway less congested and allowing everyone to travel faster and cheaper.

Bitcoin Transaction Fee Details

Let’s dive deeper into the specifics of the Bitcoin transaction fee drop. Bitcoin transaction fees have stayed relatively low, particularly since the April Bitcoin halving, which reduced the BTC mining reward by half. On June 23, the average Bitcoin transaction cost dropped to $1.93 per transaction, the lowest amount since October 2025.Understanding the numbers helps put the trend into perspective.

On June 23, 2025, the average Bitcoin transaction cost dropped to $1.93 per transaction.
This is the lowest amount since October 2025.
On June 24, Bitcoin transaction fees were recorded at $1.94 per transaction, remaining consistent with the previous day.
Before April 2025, performing a Bitcoin transaction would cost around $16.16 on average.
Today, fees are only around $0.913 per transaction, or 5.1 satoshis per virtual byte.

This represents a significant decrease, making Bitcoin transactions far more affordable for everyday users. Decline in Ethereum Fees: Here Are the Reasons. At the time of writing this article, crypto experts estimate fees at around $0.168 per transaction. According to them, this fee decrease results from a significant reduction in activity on the Ethereum blockchain.This also creates more efficiency in the network since smaller transactions are cost-effective.

Ethereum Transaction Fee Details

Similarly, Ethereum transaction fees have experienced a noteworthy decline. In 2025, Bitcoin transaction fees have stayed relatively low, particularly since the April Bitcoin halving, which reduced the BTC mining reward by half. Post Views: 54 ShareHere's a closer look at the numbers:

Ethereum transaction fees have plunged 70% in just one week.
The 7-day moving average (7DMA) of Ethereum transaction fees fell to $0.77 on February 15.
Just a week prior, the 7DMA stood at $2.57.
Fees on the Ethereum blockchain have dropped to the lowest level since 2025.
Crypto experts estimate fees at around $0.168 per transaction.
On February 8, daily transaction fees dropped by $731,472, marking the first time in five months that revenue fell below $1 million.

The sharp decline in Ethereum transaction fees indicates a significant shift in network dynamics.It may signal weakened demand or a successful shift to L2 solutions, or even a combination of both.

The Impact of Lower Transaction Fees

The reduction in Bitcoin and Ethereum transaction fees has wide-ranging implications for users, developers, and the broader crypto market.

Benefits for Users

For users, lower transaction fees translate to several key benefits:

Increased Affordability: Sending and receiving Bitcoin and Ether becomes more accessible, especially for smaller transactions.
Reduced Costs for DeFi Activities: Engaging in decentralized finance (DeFi) activities, such as trading on decentralized exchanges (DEXs) and participating in yield farming, becomes more cost-effective.
Cheaper NFT Transactions: Minting, buying, and selling non-fungible tokens (NFTs) becomes more affordable, potentially boosting the NFT market.
More Practical Microtransactions: Smaller transactions become feasible, opening up new use cases for crypto, such as micropayments for content or services.

For example, consider a user who wants to send a small amount of Bitcoin to a friend.Previously, high transaction fees might have made this impractical. Ethereum's native cryptocurrency, Ether (ETH), is used to pay for transaction fees and computational services on the network. As the foundation for much of the decentralized finance (DeFi) and NFT ecosystems, Ethereum continues to be a leader in blockchain technology, undergoing major upgrades like the shift to Proof of Stake (PoS) to improveWith fees now significantly lower, this transaction becomes economically viable.

Implications for Developers

Lower transaction fees also have important implications for developers building on these platforms:

More Viable dApps: Decentralized applications (dApps) that require frequent transactions become more viable, as users are less burdened by high fees.
Increased User Adoption: Lower fees can attract more users to dApps, leading to increased adoption and growth.
Greater Experimentation: Developers can experiment with new and innovative dApp designs without worrying about exorbitant fees deterring users.
Incentivizes L2 Development: Developers can create new layer 2 solutions to address these high gas fees.

Impact on the Broader Crypto Market

The reduction in transaction fees can have ripple effects throughout the broader crypto market:

Increased Network Activity: Lower fees can incentivize more users to transact on the Bitcoin and Ethereum networks, leading to increased activity.
Greater Competitiveness: Lower fees make Bitcoin and Ethereum more competitive with other blockchain platforms that offer faster and cheaper transactions.
Potential for Market Recovery: In a struggling market, lower fees can provide a much-needed boost, encouraging more participation and investment.
Long-Term Sustainability: By making transactions more affordable, Bitcoin and Ethereum can attract a wider user base and ensure their long-term sustainability.

Reasons for the Decline in Ethereum Fees

Ethereum, in particular, has seen a significant shift in its fee structure. On February 8, data from Token Terminal revealed that Ethereum s daily transaction fees dropped by $731,472, marking the first time in five months that revenue fell below $1 million. The asset also faces pressure from a record level of short selling through futures contracts.Multiple factors contribute to this decline, warranting a closer examination.

Reduced Activity on the Ethereum Blockchain

One reason for the lower Ethereum fees is a significant reduction in activity on the main Ethereum blockchain. Bitcoin and Ethereum transaction fees plummet to lowest level in 7 months J In 2025, Bitcoin transaction fees have stayed relatively low, particularly since the April Bitcoin halving, which reduced the BTC mining reward by half.As the foundation for much of the decentralized finance (DeFi) and NFT ecosystems, Ethereum's transaction fees are closely tied to the level of activity on the network.When fewer users are sending Ether and using smart contracts, demand for block space decreases, leading to lower gas fees.

Data from on-chain analytics platform Santiment supports this, revealing a decrease in Ether (ETH) transfers and smart contract interactions. The 7-day moving average (7DMA) of transaction fees on the Ethereum network fell to $0.77 on Feb. 15. This figure stood at $2.57 just a week prior, marking a 70% week-over-week drop. This drop pushed transaction costs to their lowest levels in dollar terms in over four years, which means the last time it was this cheap to transact on EthereumThis lull in blockchain activity has directly translated to lower transaction costs for users.

Increased Efficiency Due to L2 Adoption

However, the story is more complex than simply a decline in activity.The increased adoption of Layer-2 networks has played a crucial role in reducing Ethereum fees.By processing transactions off the main chain, L2 solutions alleviate congestion and lower gas costs for users who choose to transact on these secondary layers.

While the shift to L2 solutions has made transactions cheaper, it has also led to a steep decline in ETH burn rates. Ethereum's transaction fees have dropped to their lowest level since 2025, largely due to increased activity on Layer-2 networks. While this shift has made transactions cheaper, it has also led to a steep decline in ETH burn rates and weakened Ethereum s fundamentals. Ethereum also posted itsThis is because a portion of the transaction fees on Ethereum is burned, reducing the supply of ETH. Discover how Bitcoin and Ethereum transaction fees have plummeted to their lowest levels in seven months, driven by network upgrades and market dynamics. Learn about the impact of these changes on users and the broader crypto market.With fewer transactions occurring on the main chain, less ETH is burned, potentially weakening Ethereum's fundamentals. Ethereum and Bitcoin transaction fees drop to multi-year lows, making transactions more affordable. Layer 2 (L2) solutions on Ethereum are experiencing record-high activity. Bitcoin transaction fees have also decreased, reaching $1.94 per transaction on June 24However, this also increases the incentive to stake ETH.

Contrasting Perspectives: Is Lower Activity a Bad Sign?

While lower transaction fees are generally seen as positive, some argue that they may indicate a decline in network activity or a weakening of Ethereum's fundamentals. Ethereum and Bitcoin transaction fees have plummeted to multi-month lows despite high network activity By Oliver Dale J No Comments 4 Mins Read Telegram Twitter LinkedIn WhatsAppHowever, this perspective overlooks the key role of L2 solutions in driving the fee reduction. The crypto market has experienced one of its harshest weeks in 2025, and Bitcoin (BTC) and Ether (ETH) transaction fees have plummeted to their lowest levels in several months.While the volume of transactions on the main Ethereum chain may have decreased, overall activity on the Ethereum ecosystem is likely still high, with many users migrating to L2 networks for cheaper transactions.Furthermore, a decreased ETH burn rate may be offset by other economic factors, such as staking rewards and increased demand for ETH as a store of value.

The Future of Transaction Fees

Looking ahead, the future of transaction fees on Bitcoin and Ethereum remains uncertain. Ethereum's transaction fees have fallen sharply, reaching their lowest level in over four years. According to The Block's Data Insights, the 7-day moving average (7DMA) of transaction fees on the Ethereum network dropped to $0.77 on February 15, marking a steep 70% decline from $2.57 just a week prior.Several factors could influence fee levels in the coming months and years.

Market Sentiment: A resurgence in crypto market activity could lead to increased demand for block space and higher transaction fees.
Technology Advancements: Further advancements in scaling solutions, such as sharding on Ethereum, could lead to even lower fees.
Regulatory Changes: Regulatory changes could impact the demand for crypto transactions and, consequently, transaction fees.
Network Adoption: Continued adoption of Layer-2 solutions will continue to reduce fees, even if the overall market rebounds.

How to Take Advantage of Lower Transaction Fees

Now that transaction fees are lower, what can you do to take advantage of this situation?

Consolidate Wallets: If you have multiple wallets with small amounts of Bitcoin or Ether, now might be a good time to consolidate them into a single wallet, as the lower fees make this more cost-effective.
Explore DeFi Opportunities: With lower fees, explore DeFi opportunities such as yield farming and lending, which may have been previously too expensive.
Engage in NFT Activities: Take advantage of cheaper NFT minting and trading to participate in the NFT market.
Send Small Payments: If you've been hesitant to send small amounts of crypto due to high fees, now is a good time to do so.
Use Layer-2 Solutions: Actively explore and use Layer-2 solutions on Ethereum to take advantage of even lower fees.

Expert Opinions on the Fee Reduction

Industry experts have offered various perspectives on the recent decline in transaction fees:

Some believe it's a sign of a healthy market correction, allowing for more sustainable growth.
Others see it as a temporary lull, expecting fees to rise again as market activity picks up.
Still, others argue that it's a long-term trend, driven by technological advancements and increased adoption of scaling solutions.

Ultimately, the future of transaction fees remains uncertain, and it's important to stay informed and adapt to changing market conditions.

Frequently Asked Questions (FAQs)

Why are Bitcoin and Ethereum transaction fees decreasing?

Bitcoin and Ethereum transaction fees are decreasing due to a combination of factors.For Bitcoin, the halving event has contributed to lower fees.For Ethereum, increased adoption of Layer-2 solutions, which process transactions off-chain, is a major driver. In 2025, Bitcoin transaction fees have stayed relatively low, particularly since the April Bitcoin halving, which reduced the BTC mining reward by half. Buy Crypto MarketsReduced network activity can also play a role.

What are Layer-2 solutions and how do they reduce transaction fees?

Layer-2 solutions are protocols built on top of the main blockchain (Layer-1) that handle transactions off-chain.By processing transactions in batches and then submitting the results to the main chain, they reduce congestion and lower transaction fees.

How does the Bitcoin halving affect transaction fees?

The Bitcoin halving reduces the reward miners receive for validating blocks. The transaction costs on Bitcoin and Ether networks have plunged to their most minimal levels in several months, as the crypto market weathers a period of extreme turbulence in 2025. On June 23, the average Bitcoin transaction fee dropped to $1.93 per transaction, a nadir since October of the preceding year.This can incentivize miners to prioritize transactions with higher fees to maintain their profitability. The price of Bitcoin (BTC) is $93,825.31 today as of, EDT, with a 24-hour trading volume of $9.55B.The halving event can also create upward price pressure on Bitcoin, attracting more users and increasing network activity. In 2025, Bitcoin transaction fees have stayed low since the April halving, leading to the lowest fees in seven months for both Bitcoin and Ethereum.However, in the current situation, the halving has coincided with other factors that have kept fees relatively low.

Are lower transaction fees always a good thing?

While lower transaction fees are generally positive for users and developers, they can sometimes indicate a decline in network activity or a weakening of Ethereum's fundamentals, such as a decrease in ETH burn rates. Ethereum network fees have reached their lowest point in five years, a significant drop attributed to the recent lull in blockchain activity. Data from on-chain analytics platform Santiment reveals transaction costs are currently around $0.168. This decrease aligns with a reduction in Ether (ETH) transfers and smart contract interactions.However, this perspective often overlooks the role of L2 solutions in driving the fee reduction.

What can I do to take advantage of lower transaction fees?

You can consolidate wallets, explore DeFi opportunities, engage in NFT activities, send small payments, and use Layer-2 solutions to take advantage of lower transaction fees.

Conclusion

The recent plummet in Bitcoin and Ethereum transaction fees represents a significant shift in the crypto landscape.While market volatility and reduced network activity may play a role, the rise of Layer-2 solutions on Ethereum and the Bitcoin halving are key drivers behind this trend.For users, lower fees mean increased affordability and accessibility, opening up new opportunities for participation in the DeFi and NFT ecosystems.For developers, it creates a more viable environment for building and deploying dApps.While some concerns have been raised about the potential impact on Ethereum's fundamentals, the overall outlook remains positive, with lower fees paving the way for greater adoption and long-term sustainability.This presents a golden opportunity to re-engage with the crypto market, explore new possibilities, and maximize the benefits of these leading blockchain networks.So, take advantage of these lower fees to explore new crypto opportunities, consolidate your wallets, and get more involved in the exciting world of decentralized finance.Keep an eye on market trends and regulatory developments, and prepare to adapt to the ever-evolving landscape of the crypto market.