How to Evaluate Gas Fees Across Different Networks

Gas fees are transaction costs paid to blockchain validators. Understanding how they work across different networks helps you choose the most cost-effective way to trade and interact with DeFi.

What Are Gas Fees?

Gas is the unit measuring computational effort required to execute transactions. You pay gas fees in the network’s native token:

Costs vary significantly based on network congestion.

How Gas Fees Are Calculated

Ethereum (EIP-1559)

Total Fee = (Base Fee + Priority Fee) × Gas Used

Example:
├─ Base Fee: 20 gwei (network minimum)
├─ Priority Fee: 2 gwei (tip to validator)
├─ Gas Used: 150,000 (typical swap)
├─ Total: 22 gwei × 150,000 = 3,300,000 gwei
└─ In ETH: 0.0033 ETH (~$6.60 at $2,000/ETH)

Layer 2 Networks

L2s batch transactions and post to Ethereum, spreading costs:

L2 Fee = Execution Fee + Data Fee

Example (Base/Arbitrum):
├─ Execution: 0.00001 ETH (L2 compute)
├─ Data: 0.00003 ETH (posting to L1)
└─ Total: ~0.00004 ETH (~$0.08)

Comparing Networks

Ethereum Mainnet

Pros:
├─ Highest liquidity
├─ Most protocols available
└─ Maximum security (L1)

Cons:
├─ Expensive ($5-100+ per swap)
├─ Slow during congestion
└─ Not practical for small trades

Base

Pros:
├─ Very low fees ($0.01-0.10)
├─ Coinbase ecosystem integration
├─ Growing DeFi ecosystem
└─ Ethereum security (optimistic rollup)

Cons:
├─ Smaller liquidity than mainnet
├─ 7-day withdrawal to L1
└─ Younger ecosystem

Arbitrum

Pros:
├─ Low fees ($0.10-0.50)
├─ Largest L2 by TVL
├─ Rich DeFi ecosystem
└─ Ethereum security

Cons:
├─ Higher fees than Base
├─ 7-day withdrawal to L1
└─ Complex native token (ARB)

Optimism

Pros:
├─ Low fees ($0.10-0.50)
├─ Strong DeFi presence
├─ Superchain vision
└─ Ethereum security

Cons:
├─ Smaller TVL than Arbitrum
├─ 7-day withdrawal to L1
└─ Fewer unique protocols

Polygon PoS

Pros:
├─ Very low fees ($0.01-0.05)
├─ Fast finality (~2 seconds)
├─ Mature ecosystem
└─ Easy onboarding

Cons:
├─ Different security model (not rollup)
├─ Occasional reorganizations
└─ MATIC token required

Solana

Pros:
├─ Extremely low fees ($0.001)
├─ Very fast (400ms slots)
├─ Growing DeFi ecosystem
└─ Different tech stack (no EVM)

Cons:
├─ Not EVM compatible
├─ Historical downtime issues
├─ Different wallet ecosystem
└─ Different programming model

Monitoring Gas Prices

Real-Time Gas Trackers

• Etherscan Gas Tracker - Ethereum mainnet prices
• L2Fees.info - Compare L2 costs
• GasNow - Historical and current prices
• Blocknative Gas Estimator - Prediction tools
• Ultrasound.money - Ethereum burn tracking

Network-Specific Explorers

Strategies to Minimize Gas

1. Time Your Transactions

Gas prices fluctuate by time of day and day of week:

Generally Cheaper:
├─ Weekends (especially Sunday)
├─ Late night / early morning (US time)
└─ Holidays

Generally Expensive:
├─ Tuesday-Thursday afternoons
├─ During major NFT mints
└─ Market volatility events

2. Use Layer 2 Networks

For most DeFi activities, L2s offer identical functionality at 10-100x lower cost:

Strategy: Bridge to L2 Once

1. Bridge $1,000 USDC to Base (L1 cost: ~$5)
2. Make 100 trades on Base (total cost: ~$5)
3. Total: $10 vs. $500+ on mainnet

3. Batch Transactions

Some protocols let you combine multiple actions:

Instead of:
├─ Approve token ($3)
├─ Swap token ($6)
└─ Stake LP ($5)
Total: $14

Use Permit2 or multicall:
└─ All in one tx ($7)

4. Set Gas Limits Wisely

Too Low: Transaction fails, gas still consumed
Too High: Overpay for unused gas
Just Right: Use estimators, add 10-20% buffer

5. Use Gas-Efficient Protocols

Some protocols are optimized for gas:

• 1inch Fusion - Gasless swaps (relayer pays)
• CowSwap - Batch auctions, often lower cost
• Uniswap X - Intent-based, gas-optimized routing
• Across Protocol - Efficient bridging

Bridging Costs

Moving between networks has its own costs:

Recommended Bridges

• Across Protocol - Fast, capital efficient
• Hop Protocol - Reliable multi-chain
• Stargate - Unified liquidity
• Orbiter - Very low fees for L2s
• Official Bridges - For large amounts (slower)

When to Use Each Network

Small trades (<$100):
└─ Use Base, Polygon, or Solana

Medium trades ($100-$10,000):
└─ Use Base, Arbitrum, or Optimism

Large trades (>$10,000):
└─ Consider Ethereum for liquidity

Long-term holding:
└─ Ethereum or hardware wallet

Further Reading

• What is a DEX and How Does It Work?
• Understanding Slippage and Price Impact