Gas fees are one of the most discussed—and often most misunderstood—elements of blockchain transactions. Whether you're swapping tokens, minting NFTs, or simply transferring crypto from one wallet to another, each action requires a fee on a blockchain. Yet, users frequently ask: Why do gas fees differ so much across networks? And more importantly, how should you record these fees for proper tracking and accurate calculation of expenses or profits?
In this article, you will learn why gas fees vary from blockchain to blockchain, what factors shape these differences, and how to systematically record gas fees to maintain transparency in your transactions.
What Are Gas Fees?
Fees are small payments you make to the blockchain network for processing your transaction. These fees are paid to validators or miners who secure the network and ensure your transaction is included in a block.
To simplify:
A blockchain is like a global computer.
Each time you perform a command on it, like transfer, swap, or mint, you use its computing power.
Gas fees pay for that computing power.
Why gas exists:
This is to prevent spam on the network.
To incentivize network participants
To prioritize transactions
To keep resource usage equitable.
While all blockchains have some fee, the amount and how it's charged differ, that's what confuses most users.
Why Gas Fees Differ Across Blockchains
Main reasons are explained in detail below with clear examples.
1. The Blockchain’s Design and Consensus Mechanism
Architecture and the consensus mechanism are major reasons gas fees fluctuate in a blockchain.
Common consensus mechanisms:
Proof of Work: Bitcoin, older Ethereum version
Proof of Stake (PoS): Ethereum, Solana, Polygon
Delegated PoS: EOS, Tron
Rollups (Layer 2): Arbitrum, Optimism
DAG: Nano, IOTA
Each of the mechanisms performs transaction validation differently, hence having different costs.
Why this affects fees:
PoW networks use large computational power that results in higher fees.
Staking in PoS-based networks is less resource-intensive; therefore, the fees are much lower.
Layer-2 networks batch many transactions into one → significantly lower fees.
Example:
Sending ETH on Ethereum L1 can cost $5-$20.
Sending MATIC on Polygon usually costs less than $0.01.
This difference is real because the networks operate differently from a technical standpoint.
2. Network Congestion and Block Space Demand
Think of block space as seats on a bus. If too many people want to board and the seats are limited, the price of the ticket goes up.
Similarly:
High demand = high gas
Low demand = low gas
Reasons for Congestion:
NFT mints
Airdrop farming
Market volatility surges
Popular apps driving traffic
Example:
The high competition to get included in the next block by users during popular NFT mints on Ethereum drives gas prices up for a while.
Smaller or faster networks, like Solana or Avalanche, might not face the same pressure at the same time, thus having cheaper transactions.
3. Transaction Complexity: Simple versus Complex Actions
Not every transaction requires the same amount of computational work.
Simple Transactions:
Sending tokens between wallets
Approval of contract
Complex transactions:
Multi-token swaps
Yield farming interactions
NFT minting
Bridging assets
The more computational steps involved, the more gas is required.
Example:
Sending ETH: low fee
NFT minting: costly, since more operations should be made in its smart contract
This explains why you see large variations even on the same blockchain.
4. The Price of the Network’s Native Token
Usually, gas fees are paid in the blockchain’s native token.
Examples:
Ethereum → ETH
Binance Smart Chain → BNB
Solana → SOL
Even though the quantity of gas in units does not change, the dollar cost in reality changes when token prices move.
Example:
If a transaction uses 0.002 ETH:
ETH at $1,000 → cost $2
ETH at $3,000 → cost $6
This alone can create large variances in user experience.