Ethereum gas fees in 2025 have seen notable improvements compared to the congestion peaks of 2021 and 2022. Several key developments have contributed to a more manageable fee environment for ERC20 users.
The 2025 Gas Limit Increase
In February 2025, Ethereum validators voted to increase the network gas limit from 30 million to 36 million units per block — the first such increase since Ethereum's transition to Proof of Stake. This 20% capacity boost means more transactions can fit into each block, reducing competition and helping to stabilize fees.
Current Average Fees
As of early 2025, average ERC20 transfer fees on Ethereum mainnet range from $0.01 during off-peak periods to $3 to $5 during moderate congestion. Complex DeFi interactions like Uniswap swaps typically cost $2 to $10. These figures represent a significant improvement from the $50 to $200 fees seen during the 2021 DeFi boom.
Layer 2 Adoption
The widespread adoption of Ethereum Layer 2 networks — Arbitrum, Optimism, Base, and zkSync — has fundamentally changed the fee landscape. A growing share of DeFi activity now occurs on Layer 2, where ERC20 transfer fees average $0.01 to $0.05. This has helped reduce mainnet congestion and kept mainnet fees relatively stable.
EIP-4844 Impact
The Dencun upgrade in March 2024 introduced EIP-4844, which dramatically reduced the cost of Layer 2 data posting to Ethereum. This made Layer 2 fees even cheaper, with some networks seeing 10x reductions in transaction costs.
Looking Ahead
Ethereum's roadmap includes further scaling upgrades designed to push capacity toward 100,000 transactions per second. As these upgrades roll out, ERC20 fees on both mainnet and Layer 2 are expected to continue declining, making Ethereum more accessible for everyday users worldwide.
March 20, 2025
Embracing Minimalism: A Lifestyle Revolution
March 20, 2025
