ETH Gas Fee

If you are planning to make a swap on the Ethereum Network always ensure that you swap in periods of low gas fees. Constantly low Gas Fees (<10 Gwei) for several days indicates drop in network activity and lower adoption for ETH. High Network Fee for several days could indicate high adoption and unsustainable rallies.

About the Metric

Every Transaction on the ETH network requires a transaction fee. The transaction fee depends on the gas price of the Ethereum Network i.e. i.e. the rate charged by the Network Validators for validating a transaction. This rate is variable and largely depends on the supply demand dynamics of the number of ongoing transactions in the network. Some transactions such as minting an NFT on Ethereum or a token swap will cost more than regular transfers.

Below are current network rates for various types of transactions

Significance

The ETH network fee is a key indicator of retail activity as majority of retail investors transact on the Ethereum Network regularly. As an individual you can also use this metric to plan your activity on the network to save gas fees. For example, you will be able to to find some timings in a day where the ETH gas fee drops much lower than the busy activity hours. Planning your transactions can help you save ETH that would rather be spent in transaction fees.

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