Ethereum scaling upgrades like EIP-4844 have pushed gas fees down to around 0.6 gwei.
Layer-2 Networks now handle about 1.9 million daily transactions, shifting activity off the Ethereum Chain.
Lower base-layer fees may reduce validator earnings and impact long-term incentive balance.
Ethereum has made major progress in fixing its long-standing scaling problem. For years, high gas fees and slow processing times led to stunted growth. During busy periods, simple transactions became expensive, and many users switched to other networks. That situation has changed.
Recent upgrades, including proto-danksharding (EIP-4844), introduced a new system called ‘blobs.’ Blobs allow Layer-2 networks to post transaction data efficiently. This reduces the cost of using rollups, networks built on top of Ethereum that process transactions off the main chain and then settle them back onto it.
The impact has been clear. Average gas prices have dropped sharply. On February 23, 2026, the rate was near 0.6 gwei, with real-time readings sometimes even lower during quiet periods. This is far below the levels seen during previous bull markets. Lower fees make Ethereum more accessible and reduce barriers for developers and users.
At the same time, Layer-2 activity has surged. In 2025, these networks processed about 1.9 million transactions per day. That number continues to grow as more activity moves away from the main chain and into rollups. Ethereum’s base layer is becoming more of a settlement network, while daily activity happens elsewhere.
However, scaling changes where power and activity sit inside the ecosystem. With more transactions happening on Layer-2 networks, the main Ethereum chain sees less direct usage. While that helps reduce congestion, it also shifts influence toward rollup operators and sequencers.
Sequencers are entities that order and process transactions on Layer-2 networks before submitting them to Ethereum. In many cases, these sequencers are still centralized. If a small number of operators control most transaction flow, this creates a new kind of concentration.
Instead of high fees being the main problem, controlling risk may become the concern. If a sequencer fails or decides to censor certain transactions, users may face delays or restrictions. Even though Ethereum’s base layer remains decentralized, much of the user experience depends on systems built above it.
Scaling has improved performance, but it has also increased reliance on new intermediaries.
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Another issue is complexity. Proto-danksharding is only the first step in a larger plan called danksharding. As the system expands, more advanced data handling and verification methods will be required.
Running a node may become more demanding in terms of hardware and technical knowledge. If validation requires stronger machines or more storage capacity, smaller operators could drop out. That may reduce the number of independent participants securing the network.
When participation shrinks, power often moves toward large staking pools and professional operators. Ethereum has already seen growth in liquid staking services. Greater technical demands could increase this trend.
Scaling solves one problem but may quietly introduce another: higher entry barriers for those who want to help secure the network.
Lower fees also change how money flows through the system. Ethereum validators earn rewards from transaction fees and block issuance. If most transactions move to Layer-2 networks and blob pricing stays low, base-layer fee revenue may decrease.
In the short term, cheap fees are positive for adoption. Over time, reduced fee income could affect validator incentives. If rewards fall too much, some participants might leave, which could influence security dynamics.
At the same time, ETH Layer-2 networks and their operators may capture more value. This could shift economic power upward from the base layer to the application layer. Such a transition does not automatically weaken the asset, but it does reshape its long-term structure.
Market reactions to major upgrades have shown that economic shifts matter. After large protocol changes in the past, price and network behavior adjusted as participants reassessed incentives. Similar adjustments may occur as scaling continues to evolve.
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Every major technical improvement comes with trade-offs. Ethereum’s scaling upgrades have made transactions cheaper, faster, and more predictable. That progress allows new use cases such as gaming, social platforms, and micropayments.
Yet decentralization has always been Ethereum’s core strength. If scaling increases dependence on centralized sequencers, powerful staking pools, or large infrastructure providers, the network could become more efficient but less distributed.
The challenge lies in balance. Continued work on decentralizing sequencers, improving client diversity, and lowering hardware requirements will be critical. Without those efforts, scaling gains might come at the cost of resilience.
Ethereum’s scaling story is impressive. Gas near 0.6 gwei and nearly 1.9 million daily Layer-2 transactions show clear growth and efficiency. Still, success brings new pressures. When a system becomes faster and cheaper, it also becomes more complex and economically layered.
The next phase will determine whether scaling strengthens Ethereum’s foundation or quietly shifts risk into new corners of the ecosystem.
1. What is EIP-4844?
EIP-4844, also known as proto-danksharding, is an Ethereum upgrade that lowers data costs for rollups by introducing blob transactions.
2. Why are gas fees so low now?
Improved data handling and the rise of Layer-2 Networks have reduced congestion on the Ethereum Chain, bringing average gas near 0.6 gwei.
3. What are Layer-2 Networks?
Layer-2 Networks are systems built on top of Ethereum that process transactions off-chain and settle them later on the main network.
4. How could staking pools become a problem?
If a few large Staking Pools control a big share of validation, decision-making power may become concentrated.
5. Is Ethereum less secure after scaling?
Security remains strong, but economic and structural changes from scaling require careful monitoring to maintain decentralization.
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