#GasFeeImpact

The Impact of Gas Fees on Crypto Transactions

Gas fees have a significant impact on transaction costs in blockchain networks. For example, during periods of congestion on the Ethereum network, fees can rise to levels that make small transfers unfeasible. If a user tries to send $50 worth of ETH to another wallet, but encounters a $30 gas fee, they lose a significant portion of their funds on fees alone. This impact may prompt users to postpone transactions or look for cheaper solutions such as Layer 2 Solutions or networks with lower fees.