The crypto market has been on a steady downward trend for nearly two weeks. Bitcoin has dropped over 20% from its recent peak, and most DeFi tokens have followed suit with even steeper declines. Amid this market downturn, one piece of news is bringing genuine relief to DeFi enthusiasts: Ethereum gas fees have plummeted to their lowest levels since 2021.
According to data from GasNow, the "fast" transaction fee on Ethereum was just 42 Gwei on April 25. Just five days earlier, on April 20, the average fast gas price stood at 226 Gwei — a staggering 81% drop in less than a week. This marks the lowest gas cost seen on the Ethereum network since early 2021, opening a rare window of opportunity for users to interact with decentralized applications without breaking the bank.
👉 Discover how low gas fees are changing the DeFi game right now.
Why Are Ethereum Gas Fees So Low?
Several interconnected factors have contributed to this dramatic decline in transaction costs. Understanding them helps paint a clearer picture of the current state of the Ethereum ecosystem and what it means for users.
1. Market Downturn Reduces Network Activity
The broader crypto market correction has significantly cooled investor sentiment. Bitcoin fell from around $64,600 on April 14** to a low of **$48,000 by April 23, pushing total cryptocurrency market capitalization back below the **$1 trillion mark**. Ether (ETH) also retreated from its $2,600 high to briefly touch $2,100.
As asset prices declined, so did trading volumes and speculative activity across decentralized platforms. According to CoinMarketCap, ETH’s 24-hour trading volume dropped by over 20%, reflecting reduced user engagement on DeFi protocols, NFT marketplaces, and other dApps.
Lower demand for block space naturally leads to reduced competition among users to get transactions confirmed — which directly translates into lower gas prices.
2. Increased Block Capacity After Berlin Hard Fork
A major technical upgrade further amplified the effect: the Berlin hard fork, activated at block height 12,244,000 on April 15. This upgrade introduced several Ethereum Improvement Proposals (EIPs) designed to optimize transaction processing and improve network efficiency.
One of the most impactful changes was the ability for miners to dynamically increase the block gas limit, giving them more flexibility in handling transaction volume. Shortly after the fork stabilized, mining pools began voting to raise the cap.
On April 21, miners increased the gas limit from the long-standing 12.5 million to 13 million. By April 23, it had been pushed further up to 15 million — a 20% increase in total block capacity.
Vitalik Buterin himself endorsed the move on Reddit, stating:
“Now that the blockchain has become more efficient and secure, we can safely increase the gas limit. This makes using every application cheaper for everyone.”
Ethermine, one of the largest mining pools operated by Bitfly, explained the decision:
“After the efficiency improvements from the Berlin hard fork, raising the gas limit from 12.5 million to 15 million became economically justified.”
This expanded capacity allows more transactions per block, reducing congestion and driving down fees even during periods of moderate usage.
A Golden Window for DeFi Users
With gas fees at multi-year lows, a growing number of users are seizing the moment to re-engage with DeFi platforms they previously avoided due to high costs.
“I just saw gas at 44 Gwei — I’m tempted to try every DeFi app tonight,” one user tweeted, echoing a sentiment shared widely across crypto communities.
Developers and projects are responding in kind. Many DeFi protocols are launching targeted campaigns on social media, encouraging users to:
- Connect wallets and complete onboarding
- Migrate positions between yield farms
- Claim rewards and re-stake
- Deploy smart contracts or interact with new features
These actions, often delayed during high-fee periods, are now economically viable again — even for small-scale participants.
👉 Start exploring DeFi with near-zero friction — low fees won’t last forever.
What This Means for the Future of Ethereum
While current conditions are favorable, they may not last indefinitely. The drop in fees is largely a result of temporary market lull rather than permanent infrastructure changes. However, it does offer valuable insights into Ethereum’s evolving scalability:
- Short-term: Lower fees make Ethereum more accessible, boosting user adoption and experimentation.
- Mid-term: Continued protocol upgrades (like future EIPs and the eventual full transition to proof-of-stake) will play a crucial role in sustaining affordability.
- Long-term: Layer 2 solutions remain essential for mass adoption, but base-layer optimizations still matter — especially during critical network events.
The Berlin fork and subsequent miner-led gas limit increase show that Ethereum can adapt quickly to changing conditions, balancing security, decentralization, and usability.
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Frequently Asked Questions (FAQ)
Why did Ethereum gas fees drop so suddenly?
The sharp decline in gas fees was caused by a combination of reduced network activity due to the crypto market downturn and an increase in block capacity following the Berlin hard fork. Miners raised the gas limit from 12.5 million to 15 million, allowing more transactions per block and lowering competition-based pricing.
Is now a good time to use DeFi apps?
Yes — with gas fees at their lowest since 2021, it's an ideal time to interact with DeFi platforms. Actions like staking, swapping tokens, claiming rewards, or migrating positions are now far more cost-effective than they’ve been in over a year.
Will low gas fees last?
Not necessarily. Gas prices are highly responsive to network demand. If market sentiment improves and trading activity rebounds — especially around major token launches or NFT drops — fees could rise quickly again. Enjoy the low-cost window while it lasts.
What is the Berlin hard fork?
The Berlin hard fork is a protocol upgrade that introduced four EIPs to improve transaction efficiency and flexibility on Ethereum. It enabled support for new transaction types and paved the way for miners to safely increase the block gas limit.
How do miners decide the gas limit?
Miners can vote to adjust the gas limit within a certain range. A majority (51%) agreement among mining power is required to make changes. After Berlin’s optimizations improved network stability, major pools like Ethermine supported increasing the cap to better utilize available capacity.
Can I save money by waiting for low gas periods?
Absolutely. Monitoring tools like GasNow or Etherscan’s gas tracker let you schedule transactions during off-peak hours. Combining timing strategies with layer-2 solutions can drastically reduce long-term costs.
👉 Take advantage of ultra-low fees before they rebound — act now.
Final Thoughts
The recent plunge in Ethereum gas fees is more than just a temporary relief — it’s a reminder of how dynamic and responsive the ecosystem can be. Driven by both technical upgrades and market cycles, this moment offers a unique opportunity for both new and returning users to explore DeFi without friction.
Whether you're looking to dive into yield farming, test out new protocols, or simply reclaim dormant assets, now is one of the most affordable times in recent history to do so on Ethereum.
Stay informed, act wisely, and make the most of this rare low-cost window — because in crypto, conditions can change overnight.