#GasFeeImpact Gas fees are the costs associated with executing transactions or running smart contracts on blockchain networks, such as Ethereum. These fees are used to compensate miners or validators for the computational effort required to process and secure transactions.

Impact of gas fees on blockchain networks:

Network security: Gas fees incentivize miners and validators to participate in securing the network by validating transactions, which enhances the stability and security of the system.

Traffic management: Gas fees help regulate the movement of transactions on the network. When demand is high, fees increase, which prompts users to choose less busy times or use alternative solutions, thus reducing congestion.

Impact on users and developers: High fees can discourage users from making small transactions or developers from deploying decentralized applications (DApps), which can limit the network’s adoption and spread.

Gas fee evolution:

Ethereum gas fees have seen significant fluctuations. On February 19, 2025, the average transaction cost fell to $0.41, compared to a peak of $15.21 in previous years. This decline could be an indication of improved network efficiency or a decrease in transaction volume.