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

Ethereum is a smart contract platform for decentralized applications (a blockchain). Ethereum was founded by Vitalik Buterin, Anthony Di Iorio, Mihai Alisie, etc. and launched in 2015.

ETH holders own and govern the protocol. They currently take a cut of the total transaction fees (base fee) paid by users (revenue). Ethereum’s investors include KR1, Block Ventures, 8 Decimal Capital, etc.

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# Ethereum Median transaction fee Methodology

## 1. Overview

The Ethereum median transaction fee metric measures the middle value of all transaction fees paid on the Ethereum network each day, expressed in USD. This metric provides insight into typical transaction costs users pay to interact with the Ethereum blockchain, filtering out extreme values that could skew average calculations. The calculation processes all Ethereum transactions, computes individual transaction fees based on gas usage and pricing, then determines the daily median value.

## 2. Data sources

- **Ethereum transaction records**: Complete transaction data from the Ethereum blockchain including gas usage, gas pricing, and transaction metadata
- **End-of-day token price feeds**: ETH/USD price data used to convert ETH-denominated transaction fees to USD values
- **Token metadata**: WETH contract information used as the reference token since Ethereum transaction fees are paid in ETH

## 3. Step-by-step calculation

### Component A: Transaction data processing
- **Purpose**: Extracts and standardizes Ethereum transaction data with gas information
- **Logic**: Processes all Ethereum transactions by extracting gas usage metrics (`gas_used` and `blob_gas_used`), converting gas prices from wei to ETH by dividing by 10^18 (`effective_gas_price` and `blob_gas_price`), and associating each transaction with WETH as the token address since fees are ETH-denominated
- **Key fields**: `block_timestamp` for time grouping, `gas_used` for regular gas consumption, `blob_gas_used` for blob gas consumption, `effective_gas_price` and `blob_gas_price` for pricing

### Component B: Individual transaction fee calculation
- **Purpose**: Calculates the total fee paid for each individual transaction
- **Logic**: For each transaction, computes the total fee by multiplying regular gas usage by effective gas price plus blob gas usage by blob gas price (fee = gas_used × effective_gas_price + blob_gas_used × blob_gas_price), handling cases where blob gas components may be null by using coalesce with zero
- **Key fields**: `fee_amount` representing the total transaction fee in ETH, `block_timestamp` for daily grouping

### Component C: Daily median calculation
- **Purpose**: Determines the median transaction fee for each day
- **Logic**: Groups all transaction fees by day using timestamp truncation, then applies approximate quantiles function to calculate the 50th percentile (median) of all transaction fees for each day
- **Key fields**: `timestamp` truncated to day level, `transaction_fee_median` as the median fee value

### Final aggregation
- **Combining components**: The daily median transaction fees are processed through the finalization pipeline
- **Currency conversion**: ETH-denominated median fees are converted to USD using end-of-day ETH price feeds through the convert_to_usd_and_correct_decimals macro
- **Time aggregation**: Data is aggregated at daily intervals with timestamp truncation to day boundaries
- **Final calculation**: The metric represents the median of all individual transaction fees for each day, converted from ETH to USD, with zero-filling applied for days with no transaction data

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

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Median transaction fee

Median transaction fee

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