Transaction Costs

About this metric

What does Transaction Costs tell you?

This is the amount that users pay per transaction. On EVM chains, transaction costs depend on the complexity of the transaction (which is measured in gas). A simple transaction, e.g. a native ETH transfer, uses less gas than a more complex transaction, e.g. an ERC20 swap. Hence, we calculated this metric by looking at the median transaction costs.

How is Transaction Costs calculated?

At growthepie, we analyze every transaction and calculate the fees paid per transaction. We then determine the median transaction cost to provide a representative value that reflects typical user expenses. This approach ensures that our transaction cost metric accurately captures the cost of using the network for everyday activities. It is important to note that many other data providers report average transaction costs, which can be skewed by a small number of high-cost transactions. This onchain metric is also often called 'Median Gas Fee per Transaction' or 'Transaction Fees'.

How can Transaction Costs be gamed?

Transaction costs are hard to manipulate directly, since they are determined by network demand and gas prices and hence reflect real user costs.

How to interpret Transaction Costs?

Lower transaction costs generally indicate a more user-friendly and accessible blockchain, while higher costs may deter users and limit adoption. During periods of high network congestion, transaction costs can spike significantly, making it more expensive for users to interact with the blockchain.