Gas Fee Impact refers to how transaction costs on blockchain networks, especially Ethereum, affect users, developers, and overall network activity. High gas fees can discourage small transactions, limit DeFi participation, and reduce NFT trading volume. They also influence network congestion, causing delays and making scalability solutions like Layer 2 rollups (Arbitrum, Optimism) and sidechains (Polygon) more attractive. Lower gas fees, on the other hand, encourage more transactions, fostering adoption and innovation. Fluctuations in gas costs are driven by network demand, blockchain upgrades, and market conditions, making them a crucial factor in crypto investment and development strategies.
