You go to send some crypto… and the fee’s higher than the amount itself. Sounds familiar? You’re not alone — it happens a lot more than you think.
Gas fees are more than just operational costs. They act as the fuel that powers blockchains, rewarding validators and helping keep the network secure.
But not all blockchains charge the same way. Some offer fixed and affordable fees, while others vary widely depending on network demand and transaction complexity.
In this article, you’ll learn what gas fees are, how they work, why they exist, what affects their cost, and how to choose blockchains and wallets with lower fees — without compromising on security.
What Are Gas Fees?
Gas fees, transaction fee, or network fee — they all refer to the cost users pay to perform actions on a blockchain, whether it’s a simple transfer, a token swap, or interacting with a smart contract. This fee compensates validators and keeps the network secure by preventing congestion and spam.
Gas fees serve three key purposes:
- Incentivizing validators: Validators (or miners) need to be rewarded for processing transactions.
- Spam protection: If transactions were free, bad actors could flood the network with spam.
- Transaction prioritization: The higher the fee, the faster your transaction is likely to be confirmed.
The actual fee amount varies greatly depending on the blockchain being used. Let’s break down why that happens.
How Do Gas Fees Work in Practice?
Every time you perform an action — like sending crypto or using a dApp — the blockchain has to process that task.
This requires computational power and validator effort. Gas fees are what you pay for that service.
Example: You want to send Ethereum (ETH) to a friend. The network charges a fee to process that transaction. This fee is paid in fractions of ETH called Gwei. The busier the network, the higher the fee tends to be.
On the Ethereum network, gas fees are calculated using two main components:
- Gas Limit: The maximum amount of gas units the transaction can consume.
- Gas Price: The cost per unit of gas, usually expressed in Gwei (1 Gwei = 0.000000001 ETH).
The formula to calculate the total fee is:
Total Fee = Gas Limit × Gas Price
For example, a simple ETH transfer may have a gas limit of 21,000 and a gas price of 100 Gwei, resulting in a fee of 0.0021 ETH.
What Affects Gas Fees Prices?
Several factors influence how much you’ll pay in gas fees on a blockchain:
- Network demand: The more transactions happening at the same time, the higher the fees.
- Transaction complexity: Actions like interacting with smart contracts or using DApps consume more gas.
- Protocol upgrades: Ethereum changed the way fees work. Now, every time someone makes a transaction, a small part of the fee disappears forever — like it gets burned. This makes there less ETH over time, kind of like slowly eating cookies from a jar and never putting more back.
How Major Blockchains Handle Gas Fees
Transaction fees are essential for blockchain networks — they help secure the system, prevent spam, and incentivize validators. But the way these fees work can vary a lot from one network to another.
Here’s how some of the top blockchains handle gas fees.
Ethereum: From High Gas Fees to Scalability Upgrades
Ethereum, one of the most widely used smart contract platforms, has long faced criticism for its high gas fees. In many cases, the cost of a transaction was even higher than the transaction itself — pushing users away from decentralized apps (dApps).
To solve this, Ethereum took two important paths: upgrading the main network (Layer 1) and enabling the growth of Layer 2 solutions.
Key Ethereum Upgrades That Lowered Fees
- EIP-1559 (2021): Introduced a base fee that gets burned in every transaction, slowly reducing ETH supply and creating a more predictable fee model.
- Dencun Upgrade (March 2024): Launched proto-danksharding, cutting average gas fees from 72 gwei to around 2.7 gwei — a major improvement in affordability.
- Pectra Upgrade (May 2025): Combined two major upgrades (Prague + Electra), and introduced EIP-7702, enabling account abstraction. This lets regular wallets act more like smart contracts, making transactions smoother and cheaper.
Layer 2: Built to Scale Ethereum
At the same time, Layer 2 blockchains like Arbitrum and Optimism were created to solve Ethereum’s congestion and high costs. These L2s process transactions off the main chain and then post the results back to Ethereum.
They are EVM-compatible, meaning developers can use the same Ethereum tools and smart contracts without having to rewrite code — but with lower fees and faster speeds.
Bitcoin and Transaction Fees
Despite its reputation for high fees on the mainnet, Bitcoin remains one of the most cost-effective and reliable ways to transfer money globally — especially in large amounts.
While stablecoins offer another popular option for fast, low-volatility transfers, Bitcoin continues to lead as a decentralized alternative free from issuer control.
Bitcoin transaction fees aren’t based on the amount you’re sending, but on two key factors:
- Transaction Size (in bytes)
Each transaction takes up space in a block, measured in bytes. The more complex the transaction — with multiple inputs (addresses the BTC is coming from) and outputs (where it’s going) — the larger the size and, therefore, the higher the fee.
This means you can send millions in BTC and pay a low fee if the transaction is simple. Conversely, a small transaction with many inputs and outputs could cost more.
- Network Demand
Block space on Bitcoin is limited and shared by all users. During periods of high demand, miners give priority to transactions that pay higher fees.
So, during periods of high demand — like market spikes — fees rise. During quieter times (like late nights or weekends), fees tend to drop.
As of June 2025, the average transaction fee on the Bitcoin network is just $1.42, according to data from YCharts — a symbolic amount compared to traditional bank transfer fees.
Real-World Examples: Whales Moving Millions for Pennies
One of the most well-known cases involved a whale transferring 107,848 BTC (around $900 million) and paying only 0.02 BTC in fees — roughly $166 at the time. Imagine moving nearly a billion dollars for that price.
But there are cautionary tales too: one user mistakenly paid over $3 million in fees while trying to send just over $2 million in BTC — highlighting the importance of setting fees correctly before hitting “send.”
How the Lightning Network Drastically Lowers Bitcoin Transaction Fees
For smaller or frequent payments, the Lightning Network — a second-layer solution —makes near-instant Bitcoin transfers possible, with average fees around $0.001 per transaction. It’s ideal for anyone who values speed and cost-efficiency.
Self Custody wallets like Klever Wallet already support Lightning, enabling users to send and receive BTC with minimal costs — and no added fees beyond the network itself.
Unlike other wallets that sneak in extra charges, Klever keeps it simple and transparent.
This makes the Lightning Network especially useful for micropayments and frequent transactions — easing the load on the main network and making Bitcoin more practical for everyday use.
Tron Blockchain: Gas-Free Cross-Border Payments Using Stablecoins
Traditionally, sending USDT on the Tron network required holding TRX in your wallet to cover transaction fees. That changed with Tron Gas-Free — now, fees can be paid using USDT directly.
How Tron Gas Free works:
You pay the gas fees with USDT itself, without needing to buy TRX. This removes one of the biggest barriers for those who want to use stablecoins on the Tron network in a simple way.
In other words, for those who want to operate exclusively with USDT (the standard stablecoin on the Tron network), this feature greatly simplifies the process. You no longer need to worry about buying or receiving TRX just to use your wallet.
Klever Blockchain: Low and Transparent Fees
Klever Blockchain uses a fee model designed to be efficient, predictable, and low-cost — ideal for both beginners and developers looking for stability.
Unlike blockchains like Ethereum, where gas fees fluctuate based on network demand (gas), Klever offers a simple and transparent structure:
- All network fees are paid in KLV, reinforcing the ecosystem’s tokenomics.
- Every interaction with the blockchain triggers an automatic burn of KLV — gradually reducing the token’s supply.
- This means you always know exactly how much you’ll pay, regardless of the transaction amount or network congestion.
Accessibility-enhancing integrations
- Fee payments using Bitcoin via the Lightning Network are already supported on Klever Blockchain.
- Klever Wallet is also integrating support for Tron’s Gas-Free model, allowing users to send USDT on the Tron network without needing TRX — making the experience even more accessible for those operating with stablecoins.
- Inside Klever Wallet, users can choose to pay swap fees with KLV — especially useful if they don’t want to use, for example, TRX in a swap involving USDT and BTC.
Important: Klever Wallet does not charge any fees for sending or receiving assets. However, blockchain network fees still apply, as they are determined by the network where the transaction takes place — not by Klever.
How to Save on Gas Fees
Here are some practical tips to help you pay less in transaction fees:
- Choose the Right Time: Make transactions during off-peak hours, like late at night or on weekends, when network activity is lower.
- Use Blockchains with Lower Gas Fees: Networks like Klever, Polygon, Arbitrum, and Solana are known for their low-cost transactions.
- Pick Wallets with No Extra Fees: Wallets like Klever Wallet only charge the base network fee — no hidden fees or added commissions.
- Avoid Apps with Additional Charges: Some apps add fees even to Lightning Network transactions, charging more than the standard BTC send fee. Avoid these to cut costs.
Tools to Track Gas Fees in Real Time
To monitor gas prices and plan your transactions strategically, use tools like:
These platforms offer up-to-date gas estimates, helping you find the best time to transact and save money.
Save More: Low, Transparent Gas Fees with Klever Wallet
In the world of crypto, understanding fees is key. Paying less is great — but knowing exactly what you’re paying, when, and why is even better.
Klever Wallet’s transparent fee model puts you in control.
You see the full cost before confirming a transaction — no hidden charges, no extra fees for simply using the wallet.
Plus, integrations with the Lightning Network and Tron Gas-Free make your experience even more affordable and accessible — without sacrificing security or performance.
Want to spend less, understand your fees, and use one of the most complete crypto wallets on the market?
Download Klever Wallet today and experience a new way to manage crypto — simple, efficient, and 100% transparent.
Your crypto. Your rules. Total control over your fees.
Glossary
Gwei: A subunit of ETH. 1 ETH = 1,000,000,000 Gwei
Gas Limit: The maximum amount of gas a transaction is allowed to consume
Base Fee: The minimum fee automatically set by the network
Tip (Priority Fee): An optional extra fee to speed up your transaction
Burn: The process of permanently destroying ETH paid as base fee, reducing the total supply
