Ethereum Fees Are Collapsing as Layer 2 Grows: Can ETH Still Capture Value?

Ethereum is entering a new scaling phase as Layer 2 networks reduce transaction costs and move more activity away from the mainnet.

While cheaper fees improve adoption, they also raise questions about ETH value capture, revenue, and whether Ethereum can benefit from the growth of its expanding Layer 2 ecosystem.

Ethereum Fees Are Falling as Layer 2 Activity Grows Ethereum fees have fallen as more users and applications adopt Layer 2 scaling solutions. The networks process transactions separately but rely on Ethereum for settlement and data availability.

The shift explains why Ethereum gas fees in 2026 are much lower than during periods of intense mainnet congestion. Adoption of Layer 2 networks has decreased the load on the main chain.