Blockchain Transactions Rise as Fees Fall, Signaling Scaling Success
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Several of the largest blockchain networks processed more transactions in December despite sharply lower user fees, according to data compiled by Nansen. Bitcoin, Ethereum, Tron, Arbitrum, Polygon, Avalanche, and TON all recorded month-over-month transaction growth while fee revenue declined across the board.Ethereum stood out, with transactions up 16% even as fee revenue fell 57%, underscoring how recent upgrades have expanded block capacity and reduced congestion. Polygon posted an even sharper divergence, with transaction counts surging 82% while fees dropped 47%. Similar patterns were observed on Arbitrum and Avalanche, pointing to a broader easing of blockspace competition across major networks.
The trend suggests a structural shift: demand is being absorbed by increased capacity rather than triggering fee spikes, a key milestone for blockchain scalability.