Validators process transactions and receive fees from users (supply-side fees).

Algorand is a smart contract platform for decentralized applications (a blockchain). Algorand was founded by Silvio Micali and launched in 2018.

ALGO holders own and govern the protocol. They currently take a cut of the transaction fees paid by users (revenue). Algorand's investors include Union Square Ventures, Multicoin Capital, Pillar, etc.

github

twitter

discord

etherscan

website

Blockchains (L1)

Algorand

# Algorand Median transaction fee Methodology

## 1. Overview

Median transaction fee is measured as the middle value of all fees paid for transactions processed on Algorand within a given day. It is used to represent the cost incurred by a typical user, as the median is less sensitive to extreme outliers than a simple average. All fee values are normalized from the native asset's smallest unit and converted to USD to allow for standardized analysis.

## 2. Data sources

- **Blockchain events**: transactions on Algorand
- **External data**: End-of-day price feeds for the Algorand native asset

## 3. Step-by-step calculation

### Component A: Fee extraction and normalization

- **Purpose**: Capture and standardize fee data from the Algorand ledger
- **Logic**: Fee data is extracted from the `transactions` table on Algorand. Since transaction fees are natively recorded in microAlgos, values are divided by a factor of 1,000,000 to be expressed in whole units of the native asset.
- **Key fields**: `fee` (raw transaction cost), `block_timestamp` (timing of the transaction)

### Component B: USD conversion

- **Purpose**: Normalize transaction costs to a common currency
- **Logic**: Normalized native asset fees are multiplied by end-of-day price feeds. This conversion is performed by joining the transaction data with asset metadata and daily price records based on the timestamp and asset identifier.
- **Key fields**: `fees` (normalized native units), `price_usd` (valuation data)

### Component C: Median calculation and daily aggregation

- **Purpose**: Determine the daily representative transaction cost
- **Logic**: The 50th percentile of all USD-denominated transaction fees is calculated for each UTC day. This statistical measure is derived by ordering all transaction fees within the daily window and selecting the central value. Final values are grouped by date and chain identifier, with a zero-filling strategy applied to ensure a continuous data series for days with no recorded activity.
- **Key fields**: `transaction_fee_median` (calculated 50th percentile), `timestamp` (daily period)

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

AlgorandALGO

Median transaction fee

Median transaction fee

Competitive landscape