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▲$2,518.27 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.

The balance sheet economics of Ethereum are now challenged by the growth in alternative settlement layers.

Ethereum Gas Fees and Revenue in 2026

Ethereum gas fees are dictated by demand for block space. Gas prices rise when there is competition for limited processing power.

Adoption of Layer 2 networks reduced the demand for block space on the mainnet. The Ethereum fee revenue forecast is now dependent on capturing value from settlements and data availability. The network earns from processing transactions, but the scale is lower than previous years.