Before 2026, Ethereum had limited block space. Every transaction had to compete for a spot in the next block. When demand was high, users paid more gas to be included faster. This system worked, but it caused a few problems. During bull markets, DeFi launches, or NFT drops, fees exploded. Even simple transfers became expensive, and small users were pushed out. This situation stayed for years, even after Ethereum moved to proof-of-stake.
One of the biggest changes that helped reduce fees was the introduction and expansion of blob transactions. These transactions allow large amounts of data to be posted temporarily instead of permanently stored on Ethereum. Rollups use this data to prove transactions, but it does not stay on-chain forever, which makes the process much cheaper.
By late 2025 and early 2026, blob capacity was increased, and pricing became more stable. This removed a major cost for rollups. Instead of paying high data fees, rollups could publish data at a much lower price. This change alone removed a large part of the pressure that pushed gas fees to $50 levels in the past.
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