For years, engaging with Ethereum seemed costly and inaccessible for a significant number of individuals. In the 2021 bull market and the upcoming 2024 NFT boom, even simple transactions were priced at approximately $50, with more intricate actions frequently incurring significantly higher costs. The surge in fees highlighted Ethereum’s rising popularity, yet simultaneously barred numerous users from participation. The situation has now evolved. As of January 2026, Ethereum gas fees have plummeted to $0.01, according to data. This decline isn’t due to a decrease in Ethereum users. The outcome stems from significant technical modifications. In the wake of the Fusaka upgrade in late 2025, the introduction of PeerDAS, and the extensive adoption of Layer 2 solutions, Ethereum has successfully alleviated congestion on its primary network. What was previously a pricey and congested system has now transformed into a swift and effective settlement layer. This shift has also altered the competitive landscape between Ethereum and Solana. Solana gained a reputation for its affordability and speed, yet Ethereum has now stepped up to provide comparably low fees. The comparison has evolved beyond mere cost considerations.
Ethereum emphasizes security and decentralization, whereas Solana is all about speed, requiring a more intensive setup. Solana continues to outperform in speed for specific applications; however, Ethereum’s reduced fees have eliminated the primary incentive for users to migrate away. Nonetheless, reduced fees entail a compromise. Ethereum systematically burns a portion of each transaction fee, leading to a reduction in ETH supply, particularly during periods of elevated fees. As transaction fees have dropped significantly, the rate of burn has decreased, leading to a temporary inflationary trend for ETH. Usage stands out as the most crucial indicator.
On January 17, 2026, Ethereum achieved a remarkable milestone by processing 2.6 million transactions in just one day, setting a new record. This level of activity in the past would have led to congestion and elevated fees. The network operated seamlessly this time, demonstrating that Ethereum is capable of managing extremely high demand without incurring significant costs once more. The emerging fundamental strength is starting to make its presence felt in the markets. ETH was trading at $3,319.87, showing a consistent upward trend with a 0.62% increase over the past 24 hours. In contrast, its main competitor, SOL, is under pressure.
In the midst of its strong ecosystem, SOL is currently priced at $142.26, reflecting a decrease of 1.23% during the same timeframe. Ethereum co-founder Vitalik Buterin has recently stated that the original Web3 architecture, first proposed in 2014 and previously viewed as a far-off vision, is now a tangible reality. Overall, by 2026, Ethereum is not merely scaling; it’s returning to its roots. Ethereum has reached a price point that makes it accessible for daily transactions while maintaining both scalability and security. This shift is structural, not temporary, as upgrades such as Fusaka, PeerDAS, and mature Layer 2s have permanently unclogged the mainnet.