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

Hedera is a decentralized enterprise-grade public network that uses proof-of-stake hashgraph consensus to offer low & fixed fees, 10k TPS, and instant transaction finality. Hedera was founded by Leemon Baird, Mance Harmon, etc. and launched in 2019.

HBAR holders own and govern the protocol. They currently take a cut of the total transaction and query fees paid by users (revenue). Hedera’s investors include BlockTower Capital, Continue Capital, Unanimous Capital, etc.

github

twitter

discord

website

Blockchains (L1)

Hedera

# Hedera Average transaction fee Methodology

## 1. Overview

The Hedera average transaction fee metric measures the mean cost per transaction on the Hedera network, expressed in USD. This metric provides insight into the network's transaction pricing and cost efficiency by dividing total daily fees by the number of transactions. The calculation combines fee data from individual transactions with transaction count aggregations to compute a daily average.

## 2. Data sources

- **Hedera transaction records**: Raw blockchain transaction data including fee amounts charged in tinybars, transaction identifiers, block timestamps, and transaction metadata
- **End-of-day price feeds**: Daily USD price data for HBAR token to enable currency conversion from native fees to USD values
- **Token metadata**: HBAR token configuration data including decimal precision specifications for proper unit conversion

## 3. Step-by-step calculation

### Component A: Daily fee aggregation
- **Purpose**: Calculate total transaction fees per day in USD
- **Logic**: Extract fee amounts from raw Hedera transactions where the `fee_charged` field represents the cost in tinybars. Convert these native fee amounts to HBAR by dividing by 1e8 (since HBAR has 8 decimal places). Aggregate all fees for each day by summing the converted HBAR amounts, then convert the daily totals to USD using end-of-day HBAR price feeds. Apply data quality checks to ensure fee values are not null and properly formatted.
- **Key fields**: `fee_charged` (native fee amount), `block_timestamp` (transaction timing), `fees` (USD-converted daily total)

### Component B: Daily transaction counting
- **Purpose**: Count the number of unique transactions per day
- **Logic**: Process the same raw Hedera transaction records and count distinct transaction hashes for each calendar day. Use timestamp truncation to day-level granularity for consistent aggregation boundaries. Apply deduplication logic using distinct counting on `transaction_hash` to ensure each transaction is counted exactly once, regardless of any potential data duplicates.
- **Key fields**: `transaction_hash` (unique transaction identifier), `block_timestamp` (transaction timing), `transaction_count` (daily transaction total)

### Final aggregation
- **Combining components**: Join the daily fee totals with daily transaction counts using the date as the common key, ensuring both components represent the same time periods
- **Currency conversion**: Fees are converted from tinybars to HBAR using the 8-decimal conversion factor (÷ 1e8), then converted to USD using end-of-day HBAR price feeds applied at the daily aggregation level
- **Time aggregation**: All calculations use daily boundaries with timestamp truncation to ensure consistent time-based grouping across both fee and transaction count components
- **Final calculation**: Compute the average transaction fee by dividing total daily fees (in USD) by the daily transaction count, using safe division to handle edge cases where transaction count might be zero. The result represents the mean fee per transaction for each day in USD terms.

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

HederaHBAR

Average transaction fee

Average transaction fee

Competitive landscape