GLOSSARY // Crypto
Gas Fees
A gas fee is what you pay to have a blockchain process your transaction. It compensates the validators who run the computation and, crucially, it is priced by live demand for limited block space — not by the size of what you are sending.
That is why fees spike when the network is busy: everyone is bidding for the same scarce slots. Sending $5 or $5 million of the same token costs roughly the same gas, but sending during a frenzy can cost many times more than sending an hour later. On congested networks, a small transfer can cost more in gas than the amount being sent.
Moving a token on Ethereum costs about $3 in gas on a calm afternoon. During a popular NFT launch that same transfer can jump to $40 or more, because thousands of users are bidding for space in the same blocks.
Related terms
Educational only — not financial advice. Definitions simplified for clarity; markets are messier than definitions.