In December, major blockchain networks experienced an uptick in transaction volumes despite a noticeable decline in user fees, indicating a shift in how these systems manage demand. According to data from Nansen, Ethereum transactions surged by 16% while its fee revenue dropped by 57%. Similarly, Polygon saw an impressive increase of 82% in transactions alongside a 47% reduction in fees.
Other networks such as Arbitrum and Avalanche also reported significant transaction growth while experiencing decreased fees. Meanwhile, Tron, Bitcoin, and TON recorded modest transaction increases of 0.6%, 7.7%, and 7.9%, respectively, and also faced declines in fee revenue.
This trend is attributed to recent scaling improvements and upgrades, which have expanded network capacity without leading to congestion. For instance, Ethereum's block gas limit was raised on November 27, facilitating more transactions, a change that was further enhanced by the Fusaka upgrade in December. Polygon's Madhugiri hard fork also contributed to similar outcomes by lowering costs and improving efficiency.