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Glossary Term

Gas Fee

The fee paid to a blockchain network to process a transaction, which rises and falls with network demand.

A gas fee is what you pay a blockchain network to process your transaction. The term comes from Ethereum, where every operation consumes “gas” priced in ETH, but the concept — a fee that rises and falls with network congestion — applies broadly across chains.

Fees are set by supply and demand for limited block space: a simple transfer during quiet hours might cost cents, while interacting with a busy application at peak demand can cost far more. Layer-2 networks exist largely to bring these costs down by bundling many transactions into one. Always check the estimated fee before confirming — a small trade can occasionally cost more in gas than it is worth.

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