#GasFeeImpact Ethereum, the second-largest cryptocurrency by market capitalization, is the foundation for decentralized finance (DeFi) and smart contract applications. A key component of the network is “gas fees,” which users pay to make transactions or run smart contracts. A recent spike in these gas fees has raised concerns among both investors and users.

Understanding Ethereum Gas Fees

Gas fees on the Ethereum network represent the cost of making transactions or executing smart contracts. These fees are paid in Ether (ETH), Ethereum’s native cryptocurrency. Gas is a measure of the amount of computational effort required to perform operations. The more complex the operation, the more gas is required.