As Ethereum fees plummeted to their lowest levels since May 2017, Essentialik Buterin didn’t mince words about the network’s trajectory. Transaction costs now range from a mere $0.0027 to $0.2, with average fees hitting $0.44 in January 2026—a staggering 99% drop from the eye-watering $53.16 peak seen in May 2021.
During off-peak hours, users can send transactions for under $0.10. Sometimes even a penny. Not too shabby.
Ethereum’s become dirt cheap during quiet periods—transactions costing pennies feels like a throwback to crypto’s simpler days.
The fee collapse hasn’t gone unnoticed by Ethereum’s co-founder. Buterin declared that his original Web3 architecture from 2014 has finally become functional reality. He’s not exactly thrilled with most Layer 2 solutions either, criticizing their reliance on centralized sequencers that basically function like glorified databases.
Talk about calling it like he sees it.
The dramatic fee reduction stems from several technical advancements. The Dencun upgrade, implementing EIP-4844, slashed Layer 2 data publishing costs by at least 90%. Arbitrum fees consequently nosedived from $0.37 to $0.012.
Additional upgrades like Fusaka and PeerDAS further enhanced efficiency, with gas limits set to increase from 60 million to 200 million. These advancements reflect scalability success despite surging network usage.
Many Layer 2 projects have become ghost cities after their initial airdrops, showing unsustainable growth patterns and minimal real-world usage.
Meanwhile, Buterin’s putting his money where his mouth is. He sold 1,441 ETH worth $3.3 million in early February 2026 for donations, and withdrew a whopping 16,384 ETH ($44.7M) to support growth initiatives.
The price fluctuated between $2,180 and $2,340 during this period—down 7-10% for the week. Ouch.
The network’s hitting remarkable milestones despite low fees. A record 2.6 million daily transactions occurred on January 17, 2026, with over 800,000 active addresses showing robust adoption.
This success has Buterin outlining a “mild austerity” growth roadmap that doesn’t sacrifice core values.
His message is clear: Ethereum’s taking back lost ground in 2026, focusing on self-sovereignty and trustlessness. For investors building portfolios in this new landscape, implementing sector-based diversification becomes crucial to navigate Ethereum’s evolving relationship with Layer 2 solutions. Layer 2s better watch out—their cost advantage is rapidly eroding as Ethereum proper becomes cheaper than ever.
