Validators process transactions and receive validator rewards (supply-side fees).

AVAX is a smart contract platform for decentralized applications (a blockchain). Avalanche was founded by Emin Gün Sirer and launched in 2019.

AVAX holders own and govern the protocol. They currently take (burn) all of the total transaction fees paid by users (revenue). AVAXs investors include a16z, Polychain, Galaxy Digital, etc.

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Avalanche

# Avalanche Average transaction fee Methodology

## 1. Overview

The average transaction fee metric measures the mean cost per transaction on the Avalanche blockchain, expressed in USD. This metric is calculated by dividing total daily transaction fees by the total number of transactions for each day. It provides insight into network congestion and usage patterns, helping users understand the typical cost of executing transactions on Avalanche.

## 2. Data sources

The calculation relies on several key data sources:
- **Avalanche transaction records**: Complete blockchain transaction data including gas usage, effective gas prices, sender/receiver addresses, and transaction hashes
- **Token metadata**: WAVAX token information including the contract address (`0xb31f66aa3c1e785363f0875a1b74e27b85fd66c7`) used as the native fee token
- **End-of-day price feeds**: Daily closing prices for WAVAX to enable USD conversion of fee amounts
- **Account label mappings**: Optional address labels that categorize transaction destinations (exchanges, DeFi protocols, etc.) for enhanced transaction classification

## 3. Step-by-step calculation

### Component A: Transaction fee calculation
- **Purpose**: Calculate total daily transaction fees paid on the Avalanche network
- **Logic**: Extract all Avalanche transactions with their gas usage and effective gas price information. The `gas_used` field represents the computational resources consumed by each transaction, while `effective_gas_price` shows the price per unit of gas in wei. Convert the effective gas price from wei to AVAX by dividing by 10^18. Calculate the fee for each transaction by multiplying `gas_used` by the converted `effective_gas_price`. Aggregate these individual transaction fees by day using timestamp truncation to create daily totals.
- **Key fields**: `gas_used` (computational units), `effective_gas_price` (price per gas unit in wei), `fee_amount` (calculated transaction fee in AVAX), `timestamp` (daily boundary)

### Component B: Transaction count calculation  
- **Purpose**: Count the total number of distinct transactions per day
- **Logic**: Process the same Avalanche transaction data and count unique transactions using the `transaction_hash` field as the identifier. Group transactions by day using timestamp truncation. Use approximate count distinct for performance optimization. Enrich transaction data with destination address labels from the account mapping to categorize transaction types (labeled vs unlabeled addresses).
- **Key fields**: `transaction_hash` (unique transaction identifier), `to_address` (transaction destination), `transaction_count` (daily distinct transaction total), `contract_name` (labeled destination type)

### Component C: Currency conversion
- **Purpose**: Convert AVAX fee amounts to USD for standardized reporting
- **Logic**: Take the daily AVAX fee totals and convert them to USD using end-of-day price feeds for WAVAX. The conversion process applies appropriate decimal corrections and uses the daily closing price to ensure consistent valuation across time periods.
- **Key fields**: `fees` (USD-converted daily fee total), `token_address` (WAVAX contract address for price lookup)

### Final aggregation
- **Combining components**: Join the daily fee totals (in USD) with the daily transaction counts using the timestamp as the matching key. This ensures both metrics represent the same time period.
- **Currency conversion**: Fees are already converted to USD in the previous step using end-of-day WAVAX prices
- **Time aggregation**: All data is aggregated to daily boundaries using timestamp truncation to day level
- **Final calculation**: Calculate the average transaction fee by dividing the total daily fees (in USD) by the total daily transaction count using a safe division function that handles scenarios where transaction count might be zero. Apply schema validation and gap-filling to ensure complete time series data with zero values for days with no transactions.

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

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Average transaction fee

Average transaction fee

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