# Celo L2 Median transaction fee Methodology

## 1. Overview

Median transaction fee measures the median fee paid across all transactions on Celo L2. This metric represents the cost paid by a typical user for a single transaction, ensuring that the valuation is not skewed by exceptionally high or low fee values. It serves as a key indicator of network affordability and user experience following the transition of Celo L1 (legacy) to a Layer 2 architecture.

## 2. Data sources

- **Blockchain events**: Transaction metadata and execution receipts from Celo L1 (legacy)
- **External data**: End-of-day price feeds for native gas assets and fee-paying assets

## 3. Step-by-step calculation

### Component A: Transaction data extraction for Celo L2

- **Purpose**: Identify and extract the relevant transaction records and gas parameters for the Celo L2 environment.
- **Logic**: Transaction records are filtered for Celo L2 based on a block timestamp threshold of March 26, 2025, and later. For each transaction, the timestamp, transaction hash, gas used, and gas price are extracted. The asset used for fee payment is identified via the fee currency field, defaulting to the native Celo L1 (legacy) asset address if no specific currency is specified.
- **Key fields**: `block_timestamp`, `receipt_gas_used`, `gas_price`, and `fee_currency`

### Component B: Individual transaction fee calculation

- **Purpose**: Determine the absolute fee paid for every transaction in its native unit.
- **Logic**: The gas fee for each transaction is calculated by multiplying the gas price by the actual gas units consumed. On Celo L2, this calculation focuses on the Layer 2 execution costs, as no separate Layer 1 gas fee component is applied to the individual transaction fee calculation in this context. Amounts are normalized by the decimal precision of the specific fee-paying asset.
- **Key fields**: `gas_used` and `gas_price`

### Component C: USD conversion and median aggregation

- **Purpose**: Normalize fee values to USD and determine the daily median value.
- **Logic**: Individual transaction fees are multiplied by the end-of-day asset price corresponding to the fee-paying asset. The resulting USD values are aggregated by day. The median is calculated by identifying the 50th percentile of the USD fee distribution for all transactions within a UTC day boundary. Final values are zero-filled for any days where no transaction activity is recorded.

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

Median 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.