# Flow Average transaction fee Methodology

## 1. Overview

Average transaction fee measures the average fee users pay per transaction on the Flow network. This metric reflects the typical cost of using the network and is calculated by dividing the total value of fees collected by the total number of transactions processed. The metric accounts for activity across both Flow and Flow EVM environments.

## 2. Data sources

- **Blockchain events**: Transaction-level data including fee amounts, gas usage, and gas prices, covering Flow and Flow EVM
- **External data**: End-of-day price feeds for the native Flow asset

## 3. Step-by-step calculation

### Component A: Flow fee and transaction extraction

- **Purpose**: Capture transaction activity and fees from the Flow environment
- **Logic**: Transaction data is extracted from the network to identify individual transaction hashes and their associated fee amounts. Total transaction counts and aggregate fees are calculated on a daily basis.
- **Key fields**: `fee_amount`, `transaction_hash`, `block_timestamp`

### Component B: Flow EVM fee and transaction extraction

- **Purpose**: Capture transaction activity and fees from the Flow EVM environment
- **Logic**: Transactions are parsed from Flow EVM to extract gas usage and gas price data. Fees for each transaction are calculated by multiplying the gas used by the gas price. These values are then aggregated to determine daily total fees and transaction counts for the environment.
- **Key fields**: `receipt_gas_used`, `gas_price`, `transaction_hash`, `block_timestamp`

### Component C: USD conversion and normalization

- **Purpose**: Normalize fee values to USD for cross-environment aggregation
- **Logic**: Fees from Flow EVM are normalized by decimal precision. All native fee amounts from both Flow and Flow EVM are multiplied by end-of-day price feeds for the native Flow asset. This ensures all fee data is denominated in USD based on UTC day boundaries.

### Component D: Average fee aggregation

- **Purpose**: Calculate the final average cost per transaction
- **Logic**: Total daily fees in USD from both environments are summed and divided by the total daily transaction count. This calculation is performed at a daily granularity to produce the final average transaction fee metric.

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

Average transaction fee

Blockchains (L1)

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

Flow is a smart contract platform for decentralized applications (a blockchain). Flow was founded by Roham Gharegozlou, Dieter Shirley and Mikhael Naayem and launched in 2019.

FLOW holders own and govern the protocol. They currently don’t take a cut of the total transaction fees paid by users (revenue). Flow’s investors include a16z, Coatue, Coinfund, Fabric Ventures, etc.

Flow

Average transaction fee

Average transaction fee

Chain breakdown