# Arc Average transaction fee Methodology

## 1. Overview

Average transaction fee is defined as the average fee paid by users per transaction on Arc. The typical cost of executing transactions on the network is reflected by this metric. It is calculated by dividing the total transaction fees collected on Arc by the total number of transactions processed over a daily interval. This metric is utilized to assess the economic efficiency of Arc as an institutional-grade blockchain platform.

## 2. Data sources

- **Blockchain events**: Transaction execution details, including gas consumption and effective gas prices, captured from transactions covering Arc

## 3. Step-by-step calculation

### Component A: Transaction fee extraction

- **Purpose**: To extract and calculate the total gas fees paid for each transaction on Arc.
- **Logic**: Transaction data is parsed from Arc. For each transaction, the gas used is multiplied by the effective gas price. Since gas is paid in USD Coin, the resulting fee is normalized by decimal precision to convert the value directly into USD without requiring external price feeds.
- **Key fields**: `gas_used`, `gas_price`

### Component B: Transaction count aggregation

- **Purpose**: To count the total number of transactions processed on Arc.
- **Logic**: Transactions are aggregated daily by counting the unique transaction hashes. All submitted transactions are included in this count, regardless of whether they succeeded or reverted.
- **Key fields**: `transaction_hash`

### Component C: Average transaction fee calculation

- **Purpose**: To calculate the daily average transaction fee.
- **Logic**: The total daily gas fees calculated in Component A are divided by the total daily transaction count aggregated in Component B. Daily boundaries are defined using UTC timestamps. If the transaction count is zero, the average fee is handled safely to avoid division-by-zero errors.
- **Key fields**: `fees`, `transaction_count`

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

Average transaction fee

Blockchains (L1)

Users deposit funds into Circle account and receive USDC or EUROC at a 1:1 rate.

Circle is a financial technology company that is the principal architect of USDC and EUROC - full-reserve fiat stablecoins that bring US dollar and euro liquidity on-chain.

Circle is a private company registered in the US. Circle's investors include Goldman Sachs, Baidu, and IDG Capital etc.

Arc

Average transaction fee

Average transaction fee

Chain breakdown