π Introduction
When you trade on the blockchain, you are dealing with cryprocurrency transaction fees. Transaction fees are paid when user transfers cryptocurrencies to another wallet. Processing and verifying transactions in the blockchain requires a lot of effort, and this fee must be paid to compensate the efforts of the miners. Transaction fees can fluctuate based on how crowded the blockchain network is (network difficulty), and transaction fees can be flexible. A user who wants his payment to be confirmed immediately can choose a higher fee to incentivize miners to confirm his transaction sooner. On the other hand, one of the main concerns of cryptocurrency investors is the cost of transaction fees. In fact, this issue is more of a concern for short-term traders than long-term investors who buy and sell less.
But in general, we want to know why cryptocurrencies need transaction fees.
1- Security
For cryptocurrencies that use smart contracts (like Ethereum), keep in mind that the blockchain has a limit on how many blocks can be calculated. Also, since smart contracts use the Ethereum Virtual Machine (EVM), Ethereum uses gas fees to avoid serious problems.
2- Economic incentives
Miners and validators can profit from transaction fees. Incentives like this will encourage more miners and validator to join and secure the blockchain.
3- Sustainability
Some cryptocurrencies such as BNB and MATIC have limited supply. Consequently, after the last currency is minted, transaction fees will become the primary economic driver for project survival.
Blockchains that can handle more transactions per second usually have lower transaction fees. Today, there are dozens of popular blockchain projects that charge different fees for transactions. A simple rule of thumb is:
> the higher the network throughput, the lower the transaction fee.
The two main factors affecting transaction fees are:
1- transaction size
2- demand for block space
Given that some chains can only hold a limited amount of data per block, miners or validators are limited in the number of transactions they can include.
When many users send cryptocurrency simultaneously, the demand for block space increases and more transactions are queued for confirmation. At times, demand for block space can become so high that networks become congested and fees rise to unsustainable levels.
Larger transactions require more block space and take longer to be confirmed than small transactions.
βπ» Methodology
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In this dashboard, the following tables are used to extract data:
The following tables are used to find information about transaction fees, the number of transactions, the address of the sender of transactions, and the number of blocks mined on different chains.
algorand.core.fact_transaction
arbitrum.core.fact_transactions
avalanche.core.fact_transactions
bsc.core.fact_transactions
ethereum.core.fact_transactions
optimism.core.fact_transactions
flow.core.fact_transactions
gnosis.core.fact_transactions
near.core.fact_transactions
osmosis.core.fact_transactions
polygon.core.fact_transactions
solana.core.fact_transactions
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The following tables have been used to obtain the transactions fee in USD:
algorand.core.ez_price_pool_balances
flow.core.fact_prices
near.core.fact_prices
solana.core.fact_token_prices_hourly
But due to the lack of the price of the coins of some chains in terms of dollars, the information about the price of these coins has been used on the Ethereum blockchain. On the other hand, the transaction fees of layer 2 networks are also paid with ETH, so the following table has been used for all these cases:
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ethereum.core.fact_hourly_token_prices
To find the price of OSMO in USD, the following table is used:
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crosschain.core.fact_hourly_prices
The information in the following tables was also used to find the price of coins such as AVAX and BNB:
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avalanche.sushi.ez_swaps
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bsc.sushi.ez_swaps
For this, transactions were considered in which users swap stablecoins to these coins (AVAX or BNB) β
sum(amount_in)/sum(amount_out) as price
βsymbol_in='USDC' or symbol_in='USDT' OR symbol_in='MIM' OR symbol_in='DAI' OR symbol_in='BUSD'
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Time frame considered in this dashboard: from the last 30 days to now β
block_hour::date>=current_date-30 and block_hour::date<>CURRENT_DATE
π Purposes of dashboard
In this dashboard we created a gas tracking that looks at gas usage by a chain over the last 30 days. For a more accurate evaluation, the following metrics are used:
- Total amount USD of gas spent on the chain in the last 30 days.
- Average block gas price hourly and daily
- The top 10 addresses on each chain that spend the most on gas in the past month.
- Daily amount spent on gas by chain tracked over the last 30 days.
- Chart gas spend to network token price.
In this dashboard, 12 chains have been evaluated and all the above metrics have been analyzed for them. In the following, these chains are briefly introduced.
π§ Observations
The chart above shows how much each user paid on average for transactions fee per hour on different chain. At almost every hour in the last 30 days, the average cost per user for transactions fee on the Ethereum network was higher than on other chains. Only on October 20th, at 3:00 p.m., transactions fee per user on the Gnosis network surpassed the Ethereum.
The costs that Flow network users pay per hour for transactions fee are almost the lowest in most cases.
Algorand network users also pay a small fee for their transactions per hour.
π§ Observations
- In the last 30 days, the most fees have been collected on the Ethereum chain. BSC and Polygon are ranked second and third respectively.
- The Flow chain has collected the lowest amount of fees in the last 30 days with $2,922 USD.
- Among the layer 2 networks, Polygon has collected the most transaction fee in the last 30 days. Optimism and Arbitrum are in the second and third places.
- The highest fees collected on each chain are:
- Solana β 17.9k $USD β Nov 9
- Gnosis β 22.03k $USDβ Nov 9
- Avalanche β 54.23k $USD β Nov 8
- Algorand β 822.99 $USD β Oct 25
- Polygon β 560.2k $USD β Nov 8
- Ethereum β8.19M $USD β Nov 8
- Arbitrum β 79.4k $USD β Nov 9
- Flow β 124.67 $USD β Nov 9
- Optimism β 228.54k $USD β Nov 8
- BSC β1.12M $USD β Nov 4
- Osmosis β 1,487 $USD β Oct 28
- Near β 2,663.8 $USD β Nov 4
On the 8th and 9th of November, the state of the crypto market was heavily affected by the events of the FTX exchange. For this reason, the results show that in most chains, the highest amount of transaction fees have been paid in these days.
- In the last 30 days, at no hour has any chain had more fees than the Ethereum network.
- On average, the highest amount of fees are paid per hour on the Ethereum network ($159.3k USD). The Flow network also collects an average of only $4 USD per hour (the lowest amount of fees collected).
- The bsc network had the highest number of transaction senders with over 64k unique addresses on average per hour. On the other hand, this value for the Gnosis chain It is the lowest value.
- Solana network ranks first in terms of number of transactions by registering more than 1.3M transactions per hour. Gnosis also has the lowest number of transactions per hour.
- Optimism has the highest number of mined blocks per hour, while Ethereum has the lowest number.
π§ Observations
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Over the past 30 days, the Ethereum network has had almost the highest amount of fees per block per hour. The network had a fee of around $27.49k USD per block on November 8th (the highest amount). The lowest fee of this network per block is on October 30 ($6,565 USD). The reason for the high gas of each block on the Ethereum network is the low number of mined blocks on this network. In fact, among all the chains, Ethereum has the least number of mined blocks.
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Layer 2 networks such as Optimism and Arbitrum have mined the most blocks in the last 30 days. The highest and lowest values ββof gas per block for these networks are:
- Optimism
- max β Nov 8 β 9.75 $USD
- min β Oct 30 β 2 $USD
- Arbitrum
- max β Nov 9 β 6.25 $USD
- min β Oct 23 β 1.9 $USD
- Optimism
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Among all networks, Flow recorded the lowest gas per block. Only $0.02 USD per block! π
Top 10 Addresses on each Chain
The charts below show the top 10 addresses of each chain that have recorded the most fees in the last 30 days.
- The top Ethereum network address has recorded the highest fees among all chains in the last 30 days. β 663 ETH (915k $USD)
- For the Flow network, which has the lowest fee per transaction, the top user paid a total of 1,151 FLOW equivalent to $1,778 USD in the last 30 days.
![db_img](https://uploads.flipsidecrypto.com/product/images/2gLlbotMUyjg.png)
π‘ Conclusion
In this dashboard, transaction fees in the last 30 days on different chains were analyzed in terms of different metrics. Some of the most important results are:
- The highest and lowest fees collected during this period are related to Ethereum and Flow chains.
- BSC has the highest number of transaction senders per hour on average.
- Solana records the highest number of transactions every hour.
- On average, in the Optimism chain, the largest number of blocks are mined every hour.
- Ethereum and Flow chain users pay the highest and lowest fees per hour for transactions, respectively.
- On average, the highest fee per transaction is related to the Ethereum network and the lowest is related to the Flow chain.
Analyst: Emanoel
***Twitter: ***
Discord: Eman#9698
Special thanks to the Flipsidecrypto π§‘
Algorand is a proof-of-stake blockchain cryptocurrency protocol.[1] Algorand's native cryptocurrency is called ALGO.[2] Algorand was founded in 2017 by Silvio Micali, a professor at MIT.[3] Algorand uses a Byzantine agreement protocol that leverages proof-of-stake.[4] As long as a supermajority of the stake is in non-malicious hands, the protocol can tolerate malicious users, achieving consensus without a central authority. πMore info
![db_img](https://uploads.flipsidecrypto.com/product/images/5GxyUdQgk6Bx.png)
![db_img](https://uploads.flipsidecrypto.com/product/images/VV_luKkaOlU_.png)
![db_img](https://uploads.flipsidecrypto.com/product/images/dJEvSeEpAlos.png)
Avalanche is a decentralized, open-source proof of stake blockchain with smart contract functionality. AVAX is the native cryptocurrency of the platform. Avalanche began as a protocol for solving for consensus in a network of unreliable machines, where failures may be crash-fault or Byzantine.[6] π More info
![db_img](https://uploads.flipsidecrypto.com/product/images/xhRQtAHapAAb.png)
![db_img](https://uploads.flipsidecrypto.com/product/images/ZwIZuqWBDf7A.png)
Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform. Among cryptocurrencies, ether is second only to bitcoin in market capitalization.[8] Ethereum was conceived in 2013 by programmer Vitalik Buterin. Ether (ETH) is the cryptocurrency generated in accordance with the Ethereum protocol as a reward to miners for adding blocks to the blockchain. π More info
![db_img](https://uploads.flipsidecrypto.com/product/images/w6zctMRfrete.png)
Flow is a blockchain platform that originally was designed for gaming purposes, but has expanded since its launch in 2020. The flow blockchain enables fast, low-cost transactions and supports smart contracts. It powers blockchain applications including NBA Top Shot, a non-fungible token (NFT) offering. [9] π More info
![db_img](https://uploads.flipsidecrypto.com/product/images/CQ2vpzWrMmuk.png)
Gnosis is a blockchain infrastructure provider that first launched in 2015 as a decentralized prediction market. Though the team initially planned to offer a blockchain platform with similarities to Augur, they soon realized there was a greater need for creating infrastructure tools to help expand the utility of the Ethereum ecosystem. In 2021, the xDAI and GnosisDAO communities voted to combine their ecosystems to create the Gnosis Chain a sidechain that aims to address many of the scaling challenges of the Ethereum blockchain. Gnosis Chain is the associated execution-layer EVM (Ethereum Virtual Machine) chain for stable transactions.[10] π More info
![db_img](https://uploads.flipsidecrypto.com/product/images/VFeKqyjr5aOx.png)
Optimism is a fast, stable, and scalable L2 blockchain built by Ethereum developers, for Ethereum developers. Optimism is an "Optimistic Rollupββ which is basically just a fancy way of describing a blockchain that piggy-backs off of the security of another "parent" blockchain. Specifically, Optimistic Rollups take advantage of the consensus mechanism (like PoW or PoS) of their parent chain instead of providing their own. In Optimism's case this parent blockchain is Ethereum. π More info
![db_img](https://uploads.flipsidecrypto.com/product/images/hHAXCKBr-A8z.png)
Osmosis is a DEX protocol, which means it uses smart contracts to determine the price of crypto assets, to produce liquidity via a peer-to-peer (P2P) methodology, and to exact trades between users. This approach to an exchange platform is known as an AMM a DEX protocol that prices crypto assets in liquidity pools.[13] π More info
![db_img](https://uploads.flipsidecrypto.com/product/images/jG9kRpcPcQKH.png)
![db_img](https://uploads.flipsidecrypto.com/product/images/M_kuXaQcqMyj.png)
π§ Observations
- The highest and lowest costs related to transactions fee per user on different chains are:
- Arbitrum
- max β Nov 9 β 2.1 $USD
- min β Oct 30 β 0.85 $USD
- Solana
- max β Nov 9 β 0.013 $USD π
- min β Oct 24 β 0.003 $USD π
- Ethereum
- max β Nov 8 β 164 $USD π₯
- min β Oct 30 β 45.5 $USD π₯
- Avalanche
- max β Nov 8 β 3.55 $USD
- min β Nov 13 β 2 $USD
- Osmosis
- max β Nov 4 β 0.099 $USD
- min β Nov 11 β 0.002 $USD
- Gnosis
- max β Nov 9 β 4.88 $USD
- min βNov 12 β 0.65 $USD
- Flow
- max β Oct 18 β 0.003 $USD π€©
- min β Nov 2 β 0.001 $USD π€©
- Polygon
- max β Nov 8 β 4.81 $USD
- min β Oct 30 β 0.29 $USD
- BSC
- max β Oct 19 β 7.13 $USD
- min β Oct 21 β 3.6 $USD
- Algorand
- max β Oct 25 β 0.26 $USD
- min β Nov 9 β 0.094 $USD
- Near
- max β Oct 20 β 0.115 $USD
- min β Nov 12 β 0.07 $USD
- Optimism
- max β Nov 8 β 9.76 $USD
- min β Oct 30 β 2 $USD
- Arbitrum
π§ Observations
- In the last 30 days, Solana has the highest total number of transactions. Solana has the lowest fees per transaction after Flow.
- In the last 30 days, in all hours, Ethreum and Flow have had the highest and lowest fees per transaction, respectively.
- On November 8, the fee per transaction on Ethereum reached its highest value. On this day, users paid an average of $7.2 USD per transaction, while on October 30, the fee per transaction on Ethereum reached the minimum value of $1.9 USD.
- The fees that users pay per transaction on the Flow network are very small. The highest amount of fees that the users of this network have paid for their transactions in the last 30 days does not even reach 1 cent.