gasfees

What are "Gas Fees"?

That moment you realize a small crypto transaction costs more in fees than the actual amount you're sending? 🤯 It's super confusing, but understanding why those 'gas fees' exist can save you a lot of headache (and crypto!).

Imagine you're sending a package, but instead of the post office, you're using a super-fast, global delivery service where thousands of drivers are waiting to take your order.

On networks like Ethereum, these drivers (miners or validators) need fuel to process your transaction and get it added to the blockchain.

That ‘fuel’ is what we call a gas fee!

⛽ You pay it to compensate the network for the computing power it uses, just like paying a toll for a road.

But here's the kicker: sometimes you get stuck in traffic, and your package never reaches its destination, yet you still paid the toll.

😭 Therefore, even if your transaction fails - perhaps because the network was too busy, or you didn't budget enough 'gas' - the network still tried to do the work, and the miners spent their 'fuel' attempting to process it.

The big takeaway here is that gas fees aren't fixed; they're like dynamic surge pricing for network activity! 📈

So, always check the current gas price on the network (like using a gas tracker) before you hit 'send', especially on busy days.

This helps you avoid frustrating surprises and make smarter crypto moves! ✨

#CryptoBasics #GasFees #Ethereum #BlockchainExplained

- Disclaimer: Sharing knowledge and insights as part of learning and growing together. For educational purposes only, not financial advice.

Ethereum solidified its position as the top blockchain in 2024 by generating $2.48 billion in fee revenues. However, this strong performance in fees contrasted with the underwhelming price action of ETH during the same period.
In total, Layer 1 and Layer 2 blockchains collectively earned nearly $6.9 billion in transaction fees in 2024.
Ethereum Maintains Leadership Despite Upgrades
According to a CoinGecko report, Ethereum’s fee revenues rose by 3% compared to $2.41 billion earned in 2023.
Despite the Dencun upgrade in March 2024, which lowered transaction costs on Layer 2 solutions, Ethereum continued to dominate fee revenues. The migration of users from the Layer 1 mainnet to Layer 2 solutions did not hinder its strong market position.
Monthly revenues for Ethereum ranged from $62.82 million to $606.77 million throughout the year. The blockchain's most profitable quarter in two years was the first quarter of 2024, generating $1.17 billion, nearly half of its annual fee revenue. This surge was driven by airdrop initiatives and heightened on-chain activity.
Other Blockchains: Tron and Solana on the Rise
Tron ranked second in fee revenues, earning $2.15 billion in 2024—a staggering 116.7% increase from $922 million in the previous year. This growth was largely driven by the expanded use of stablecoins, with Tron’s monthly earnings hitting $342.54 million in December 2024.
Solana experienced the highest percentage growth, with its fee revenues skyrocketing by 2,838% from $25.55 million in 2023 to $750.65 million in 2024. This surge was fueled by increased transaction activity, which even caused network congestion in April 2024. Solana’s monthly revenues peaked at $197.5 million in November 2024.
Bitcoin and BNB Chain: Modest Growth
Bitcoin saw its fee revenues grow by nearly 16%, while BNB Chain recorded an 8.7% increase. Although these gains were more modest, they were still significant. Bitcoin’s growth was supported by innovations such as Ordinal NFTs, BRC-20 tokens, and the development of Rune tokens.
Conclusion: Ethereum Remains Dominant
Despite competition and changes within the ecosystem, Ethereum has proven its ability to remain a dominant force among blockchains. Its fee revenues far outpaced those of other blockchains, reaffirming its central role in the crypto industry. However, the rise of Tron and Solana highlights the rapidly evolving market and the emergence of new players.

#blockchain , #Ethereum , #gasfees , #nft , #ETH

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“