# Celo L2 Average transaction fee Methodology

## 1. Overview

Average transaction fee measures the average fee users pay per transaction on Celo L2. This metric reflects the typical cost of interacting with the network and serves as a key indicator of network affordability and economic activity. It is calculated by dividing the total transaction fees collected by the total number of transactions processed during a specific period.

## 2. Data sources

- **Blockchain events**: Transaction-level data including gas consumption and price metrics from Celo L2
- **External data**: End-of-day price feeds for native assets and fee-paying assets such as USDT

## 3. Step-by-step calculation

### Component A: Gas fee extraction

- **Purpose**: Identify and calculate the total fees paid for network transactions
- **Logic**: Transaction records are filtered to isolate activity on Celo L2, defined as transactions occurring on or after March 26, 2025. For these records, the gas fee is calculated by multiplying the `gas_price` by the `gas_used`. The resulting values are normalized by decimal precision to reflect the actual asset amounts.
- **Key fields**: `gas_price`, `gas_used`, `block_timestamp`, `token_address`

### Component B: Transaction count aggregation

- **Purpose**: Determine the volume of discrete operations executed on the network
- **Logic**: The total number of transactions is calculated by counting unique `transaction_hash` entries within the transaction dataset. This count includes all successful operations processed by the network for the specified day.
- **Key fields**: `transaction_hash`, `block_timestamp`

### Component C: USD conversion and normalization

- **Purpose**: Convert fees from native denominations to USD for standardized reporting
- **Logic**: Fee amounts are multiplied by end-of-day price feeds corresponding to the asset used for payment. For specific assets like USDT on Celo L2, prices are mapped to verified price feeds to ensure valuation accuracy. All values are aggregated to a daily granularity using UTC day boundaries.
- **Key fields**: `timestamp`, `token_address`, `price_usd`

### Component D: Average fee calculation

- **Purpose**: Derive the final average cost per transaction
- **Logic**: The total daily fees in USD are divided by the total daily transaction count. This quotient represents the average cost paid by a user for a single transaction on Celo L2. If no transactions occur on a given day, the value is zero-filled to maintain data continuity.
- **Key fields**: `fees`, `transaction_count`

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

Average transaction fee

Blockchains (L2)

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

Celo is a smart contract platform for decentralized applications (a blockchain). Celo was founded by Rene Reinsberg and Marek Olszewski and launched in 2020.

CELO holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue). Celo's investors include a16z, Greenfield, Electric Capital, etc.

Celo L2

Average transaction fee

Average transaction fee

Chain breakdown