Finance

Ethereum’s October Surge: How Record Transactions and Low Gas Fees Redefine Network Scalability

Ethereum saw record transactions and users in October, yet gas fees stayed low thanks to Layer-2 networks.

byAndres Castro

October 30, 2025, 11:19 AM

A physical Ethereum coin standing on a stack, reflected on a golden surface.

A physical Ethereum (ETH) coin reflected on a golden surface. By MDL.

Executive Summary

In October 2025, the Ethereum network recorded its highest-ever transaction volumes and unique active addresses, indicating unprecedented on-chain activity.

Despite this record surge in usage, average gas fees remained near historic lows, a significant departure from previous patterns where increased activity led to higher costs.

This ability to handle high activity with low fees is primarily attributed to the expanding adoption of Layer-2 networks and crucial infrastructure upgrades such as the transition to proof-of-stake and the implementation of EIP-4844 (proto-danksharding).

The Story So Far

The Ethereum network is managing record transaction volumes with historically low gas fees primarily due to the widespread adoption of Layer-2 (L2) scaling solutions, which offload transaction processing from the mainnet, and significant infrastructure upgrades like EIP-4844 (proto-danksharding) and the transition to a proof-of-stake consensus mechanism, all of which enhance the network’s overall capacity and efficiency.

Why This Matters

The unprecedented surge in Ethereum’s on-chain activity coupled with historically low gas fees signals a significant breakthrough in the network’s scalability, demonstrating the success of Layer-2 solutions and infrastructure upgrades like EIP-4844. This development not only enhances Ethereum’s usability and affordability for a broader user base but also solidifies its position as a robust and sustainable platform capable of supporting the continued growth of DeFi, NFTs, and other Web3 innovations without succumbing to previous congestion issues.

Who Thinks What?

Developers and market observers attribute the sustained low gas fees, despite record network activity, primarily to the expanding adoption of Layer-2 (L2) networks and significant infrastructure upgrades like EIP-4844 and the transition to proof-of-stake.

Ethereum developers are committed to expanding the network’s capacity while maintaining decentralization and security, anticipating that continued Layer-2 adoption will be crucial for sustainable scaling and preventing a return to previously high gas fee conditions.

The Ethereum network reached unprecedented levels of on-chain activity in October 2025, recording its highest-ever transaction volumes and unique active addresses. This surge in usage, however, did not lead to the typical increase in transaction costs, with average gas fees remaining near historic lows, according to data from Token Terminal.

Record Activity on Ethereum Mainnet

Data from Token Terminal confirms that Ethereum Layer 1 (L1) has seen record numbers in daily transactions and unique active addresses. Millions of transactions are now processed daily, significantly exceeding previous monthly averages. This heightened activity reflects increased engagement across decentralized finance (DeFi) platforms, NFT applications, and other on-chain services.

Developers have noted that the network is managing this increased load without experiencing significant congestion, indicating improved capacity. The growth is largely attributed to enhanced user experiences and broader interaction with decentralized applications, showcasing rising demand for Ethereum’s on-chain services.

Gas Fees Remain Low Despite Heavy Network Usage

Historically, an increase in Ethereum transactions would typically result in higher gas fees due to network congestion. However, this pattern has not materialized during the current period of record activity. Ethereum’s average gas fees are presently near their lowest historical points.

Market observers attribute this shift primarily to the expanding adoption of Layer-2 (L2) networks, including Arbitrum, Optimism, and Base. These L2 solutions process transactions off-chain and then bundle them for settlement on the mainnet, effectively offloading traffic from the base layer and allowing for high throughput while keeping user transaction fees down.

Technology Upgrades Support High Activity

A series of infrastructure upgrades have significantly bolstered Ethereum’s ability to scale. The implementation of EIP-4844, also known as proto-danksharding, is expected to further reduce costs and enhance data availability for L2 networks. Additionally, Ethereum’s transition from a proof-of-work to a proof-of-stake consensus mechanism has made it more energy-efficient and structurally flexible, creating a stronger foundation for handling increased activity without compromising network speed or raising fees.

Rollups, a crucial component of Ethereum’s scaling roadmap, are being adopted at an accelerating pace. These solutions efficiently process transactions and help maintain a balanced load on the mainnet, contributing to better conditions for both users and developers.

Outlook for Network Scalability

Moving forward, a primary challenge for Ethereum will be to maintain robust performance while keeping transaction costs low. Ethereum developers are committed to expanding the network’s capacity while simultaneously safeguarding its decentralization and security. The continued rise in Layer-2 adoption is anticipated to play a critical role in enabling Ethereum to scale more sustainably.

As user activity across Web3 services continues to grow, Ethereum will need to adapt to increasing demand without reverting to the high gas fee conditions that previously limited its widespread usability. For the time being, Ethereum’s infrastructure appears to be effectively managing the heightened pressure, suggesting it could remain a central hub for blockchain innovation.