Ethereum Fees: How to Calculate, Forecast, and Save on Gas in 2024

Ethereum ranks second in market capitalization after Bitcoin and serves as the main platform for decentralized applications and smart contracts. Currently, the ETH price is $2.91K, making the network one of the most active and costly to use.

If you regularly conduct transactions on the Ethereum blockchain, you encounter gas fees — payments for computational resources needed to process and confirm transactions. To manage funds effectively, it is crucial to understand how these fees are formed.

Basics: gas and gwei in Ethereum

Gas is a unit measuring the amount of computational work required to perform an operation. Every action on the Ethereum network requires a certain amount of gas: from simple transfers to complex interactions with smart contracts.

Three components that make up the fee:

1. Gas amount (gas units) — indicates how much “computational work” needs to be done. A simple ETH transfer requires a standard 21,000 units.

2. Gas price (measured in gwei) — determines the cost of one gas unit. 1 gwei = 0.000000001 ETH. This value fluctuates depending on network congestion.

3. Total fee — product of amount and price. For example, transferring 21,000 units at 20 gwei per unit results in: 21,000 × 20 gwei = 420,000 gwei = 0.00042 ETH.

When the network is congested, gas prices increase because users compete for space in the next block. During calm periods, fees decrease.

How EIP-1559 reformatted the fee system

The London Hard Fork update in August 2021 introduced revolutionary changes via the EIP-1559 mechanism. Instead of a simple auction where each user proposed their price, a two-tier system was introduced:

• Base fee — automatically calculated by the protocol based on demand and burned from circulation (which reduces ETH supply and potentially increases its value)
• Priority tip (tip) — optional payment to miners/validators to speed up processing

This architecture made fees more transparent and predictable, although during demand peaks (NFT boom, meme coin launches) prices still soar.

Typical operation costs in 2024

Cost depends on the type of operation and current network load:

During high activity, these numbers can increase 5–10 times. For example, at 200 gwei per unit, a simple transfer would cost about 0.0084 ETH instead of the expected 0.00042 ETH.

Four tools to track current fees

Etherscan Gas Tracker — the most popular option. Shows current gas prices in “slow,” “standard,” and “fast” categories, plus forecasts for different operation types.

Blocknative offers more detailed analysis with price trends and recommendations for optimal transaction timing.

Gas Now visualizes gas price changes over time, helping to understand when the network is congested or relatively calm.

Built-in wallet features (MetaMask, Ledger Live) allow adjusting the fee directly before sending a transaction without additional windows.

What influences gas price spikes

Network congestion — the main factor. When many users trade tokens, send NFTs, or interact with DeFi protocols simultaneously, competition for block space increases, and prices rise.

Operation complexity — smart contracts consume more gas than simple transfers because they require more computational resources.

Cyclical peaks — usually high fees during daytime UTC on weekdays, lower on weekends and at night. During new coin launches or speculative waves, this pattern can be broken.

Protocol updates — each upgrade (like Dencun with layer 2 support) affects network efficiency and, consequently, prices.

Solutions to reduce fees: Layer 2 is suitable

Layer 2 networks (Optimism, Arbitrum, zkSync, Loopring) have addressed high gas issues by processing transactions off the main chain:

• Optimistic Rollups (Optimism, Arbitrum) bundle many operations into a single mainnet record, reducing fees by 10–50 times
• ZK-Rollups (zkSync, Loopring) use cryptographic proofs and achieve even greater efficiency

Result: a transaction on Loopring can cost less than $0.01 instead of several dollars on the Ethereum mainnet.

Four practical ways to manage gas expenses

1. Plan according to schedule

Monitor load patterns via Etherscan. Send non-urgent operations on weekends or at night (UTC) when prices are lowest. For urgent transactions — do them during the day, but check the price before sending.

2. Set the correct gas limit

Insufficient limit will cause an “Out of Gas” error and loss of the entire fee without success. Overestimate by 20–30% above the estimate to ensure execution.

3. Use Layer 2 for bulk operations

If you need to perform many small transactions, move funds to Optimism or Arbitrum. Fees will drop significantly, and speed will increase.

4. Batch operations

Combine multiple transactions into one or use protocols that allow deferred execution. One smart contract deployment is cheaper than several individual calls.

Future: Ethereum 2.0 and Dencun are already operational

The Dencun upgrade (including EIP-4844 proto-danksharding) has already reduced fees for Layer 2 networks, increasing Ethereum’s throughput from about 15 transactions per second to roughly 1000 TPS.

A full transition to Ethereum 2.0 with Proof of Stake and sharding promises even greater improvements, potentially lowering fees to microcents.

Frequently asked questions about gas in Ethereum

Why do I pay for failed transactions? Because validators still spent computational resources processing it. The network charges for work regardless of the outcome.

What is “Out of Gas”? You set a gas limit below the required amount. Increase it when resubmitting.

When is gas cheapest? Usually on weekends or at night UTC. Use Etherscan for precise forecasts.

Can I run out of money if I set the gas limit? No. You pay only for the gas used, not more than the limit. The remaining amount is refunded.

What is a “normal” gas price? 15–50 gwei — calm conditions. 50–200 gwei — increased demand. Above 200 gwei — peak times or anomalies.

In summary: mastering the mechanics of gas and gwei is key to cost-effective operations on Ethereum. Combine price tracking, timing, and Layer 2 solutions, and you will significantly save on fees without sacrificing speed or security.