Fee traps or necessary costs? A complete analysis of Ethereum gas fees in 2024

Ethereum, as the second-largest global crypto asset (market cap of $351.73 billion, current price $2,910), faces the persistent issue of gas fees within its ecosystem. What are gas fees in cryptocurrency? Simply put—it’s the cost you pay to the network to get your transaction processed. Every time you transfer ETH, interact with DeFi apps, or buy/sell NFTs on the Ethereum network, you incur this cost.

How Are Gas Fees Actually Calculated? The Underlying Logic

Gas fee (gas fee) is the amount paid by users to compensate for the computational resources required to validate transactions on the network. The concept sounds complex, but the core logic is straightforward:

Key numbers you must remember:

• 1 gwei = 0.000000001 ETH
• A simple transfer typically requires 21,000 units of gas
• Total gas fee = Gas price × Gas limit

For example, if you transfer ETH to another wallet. The network requires 21,000 units of gas. If the current gas price is 20 gwei, your fee is: 21,000 × 20 = 420,000 gwei = 0.00042 ETH. It doesn’t sound like much, but during network congestion, this price can spike tenfold.

Cost Comparison Table for Practical Scenarios

Different operations require different amounts of gas. Below are typical scenario estimates for 2024 (based on a gas price of 20 gwei):

What Changed with EIP-1559? The New Rules Post-2021

The London hard fork in August 2021 introduced EIP-1559, fundamentally changing the gas fee model. This isn’t a minor tweak—it’s a structural overhaul.

Previous model: Users bid, highest bidder gets priority, similar to an auction
Now: The system automatically sets a base fee, and users can add tips to speed up

This change has two major implications:

• Part of the base fee is burned, directly reducing ETH supply
• Fees become more predictable, smoothing out extreme price jumps

How to Check and Save Money Now—Practical Guide

Comparison of Tools

Etherscan Gas Tracker is the most trusted choice. It provides real-time gas price suggestions (fast/standard/slow) and can forecast fees for different transaction types. Many don’t know it also has historical data comparison features.

Blocknative further enhances the experience, not only showing current prices but also using AI to predict price trends. If it indicates “price may drop in the next few hours,” it’s worth waiting.

MetaMask built-in feature—most users overlook the advanced fee editing options within their wallet. No need for external tools.

Four Practical Tips to Save Money

1. Timing is key
The network isn’t busy 24/7. Weekends and US mornings (Eastern Time 6-10 AM) usually see 50-70% lower gas prices. If your transaction isn’t urgent, waiting a couple of hours can save dozens of dollars.

2. Monitor network activity
When NFTs are hot, new tokens explode, or DeFi events occur, gas prices spike. Do the opposite—transact during calm periods.

3. Use Layer 2 solutions
This is a game-changing strategy in 2024. Transactions on Arbitrum and zkSync cost less than 1% of mainnet fees. Examples:

• Uniswap swap on mainnet: $5-20
• Same swap on zkSync: $0.05-0.10
• Loopring transfer: usually < $0.01

4. Set reasonable gas limits
Too low, and your transaction will “run out of gas” and fail, costing you more. Too high, and you waste money. Standard ETH transfer needs 21,000; adjust for contract interactions based on type.

The Three Main Drivers Behind Fee Fluctuations

Network demand fluctuations are the most direct. More users mean more competition. Demand can vary by a factor of 10 at different times.

Transaction complexity also matters. Simple transfers vs. executing complex DeFi strategies consume vastly different resources.

Protocol upgrades fundamentally change the rules. EIP-1559 reduced extreme volatility, and the 2024 Dencun upgrade (including EIP-4844) will boost network throughput from about 15 TPS to nearly 1000 TPS, significantly lowering gas fees.

Promises of Ethereum 2.0 and Dencun Upgrade

After transitioning to proof-of-stake (PoS), Ethereum can process more transactions. The cumulative effects of Beacon Chain, The Merge, sharding, and other upgrades are:

Gas fees are expected to drop below <$0.001 (100-1000 times cheaper than now). This goal sounds distant, but the Dencun upgrade has already taken a big step toward it. Proto-danksharding technology further reduces Layer 2 costs.

How Layer 2 Breaks Through Mainnet Bottlenecks

Layer 2 isn’t a new concept, but in 2024 it truly becomes mainstream:

Optimistic Rollups: Optimism and Arbitrum lead here. They batch transactions off-chain and only record the final result on the mainnet. User experience is nearly identical, but costs plummet.

ZK-Rollups: zkSync and Loopring use cryptographic proofs instead of trust. Theoretically safer, practically cheaper. Transfers on Loopring can really reach <$0.01.

The core logic of these solutions: reduce mainnet load → lower competition → lower fees.

Practical FAQ—Common Confusions

Q: Why do failed transactions still cost fees?
A: Miners/validators have already consumed computational resources. Even if the transaction fails, the work is done, so you pay. That’s why testing is important.

Q: How to fix “Out of Gas” errors?
A: Your gas limit is set too low. When resubmitting, increase the limit—adding about 50% redundancy is usually safe.

Q: Can I completely avoid gas fees?
A: Not entirely. But you can minimize them—use Layer 2, choose optimal timing, or batch operations.

Q: When should I choose fast/standard/slow?
A: Use fast when urgent (more expensive). Standard is a balanced choice. Slow is cheapest but takes longer.

Q: Are gas fees related to ETH price?
A: Yes, indirectly. Fees are measured in gwei, but ETH price affects the dollar cost. When ETH appreciates, the same gwei amount costs more USD.

Final Advice

Mastering gas fees is a must for Ethereum users. The environment in 2024 is much better than previous years—more Layer 2 options, the Dencun upgrade launched, and tools are more mature.

Don’t be scared by high costs. The key points:

• Pick the right time (weekends, mornings)
• Use the right tools (Etherscan or MetaMask)
• Consider Layer 2, especially for frequent small transactions

Mainnet ETH transactions are sometimes expensive, but still the first choice for complex financial operations. Layer 2 is ideal for daily small trades. Combining both ensures cost efficiency and security.

Further Reading

• Best ZK Rollup projects in 2024
• In-depth comparison of Ethereum Layer 2 networks
• How to add Optimism network in MetaMask
• How to add Arbitrum network in MetaMask
• Detailed solutions for Layer 1 and Layer 2 scaling