Ink batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense).

Ink is an Ethereum Layer 2 (L2) blockchain built on Optimism's Superchain, focused on providing a secure, scalable infrastructure for Web3 applications.

Kraken team owns and governs the protocol. Kraken's investors include RIT Capital Partners, Hummingbird Ventures, Money Partners Group, etc.

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Blockchains (L2)

# Ink Average transaction fee Methodology

## 1. Overview

The average transaction fee metric measures the mean cost per transaction on the Ink blockchain, expressed in USD. This metric is calculated by dividing the total daily transaction fees by the total number of transactions for each day. The calculation accounts for Ink's Layer 2 architecture, which includes both L2 execution fees and L1 data availability fees that users pay for each transaction.

## 2. Data sources

- **Ink blockchain transaction records**: Complete transaction data including gas consumption metrics, gas prices, L1 fee components, transaction hashes, addresses, and timestamps
- **End-of-day price feeds**: ETH/USD exchange rates used for currency conversion 
- **Token metadata**: ETH token information including the standard ETH contract address (`0x4200000000000000000000000000000000000006`) and symbol for the native currency on Ink

## 3. Step-by-step calculation

### Component A: Transaction data extraction
- **Purpose**: Extracts and standardizes core transaction data from raw Ink blockchain records
- **Logic**: Selects key transaction fields including `block_timestamp`, `transaction_hash`, `from_address`, `to_address`, gas consumption data (`gas_used`, `gas_price`), and L1 fee components (`l1_gas_used`, `l1_gas_price`, `l1_fee_scalar`). All transactions use ETH as the native token with the standard L2 ETH contract address.
- **Key fields**: `gas_used` (L2 gas consumed), `gas_price` (L2 gas price), `l1_gas_used` (L1 gas for data availability), `l1_gas_price` (L1 gas price), `l1_fee_scalar` (L1 fee multiplier)

### Component B: Gas fee calculations  
- **Purpose**: Calculates the total transaction fee by combining L2 execution costs and L1 data availability costs
- **Logic**: Computes L2 gas fees by multiplying `gas_used` by `gas_price` and dividing by 1e18 to convert from wei to ETH. Calculates L1 gas fees by multiplying `l1_gas_used`, `l1_gas_price`, and `l1_fee_scalar`, then dividing by 1e18. Each transaction's total fee is the sum of L2 and L1 components.
- **Key fields**: `l2_gas_fee` (execution cost), `l1_gas_fee` (data availability cost)

### Component C: Daily fee aggregation
- **Purpose**: Aggregates individual transaction fees into daily totals and converts to USD
- **Logic**: Groups transactions by day using `timestamp_trunc` on `block_timestamp`. Sums the total fees (L1 + L2) for all transactions within each day. Converts ETH-denominated fees to USD using end-of-day price feeds. Applies metadata including chain identifier, business line classification, and market sector labeling.
- **Key fields**: `timestamp` (daily boundary), `fees` (total daily fees in USD), `chain_id` (set to 'ink')

### Component D: Daily transaction counting
- **Purpose**: Counts the total number of unique transactions per day
- **Logic**: Groups transactions by day and counts distinct `transaction_hash` values to get the total transaction volume. Includes the same metadata fields for consistency with fee aggregation including chain identifier and business classifications.
- **Key fields**: `transaction_count` (distinct transactions per day), `timestamp` (daily boundary), `chain_id`

### Final aggregation
- **Combining components**: The daily fee totals and daily transaction counts are joined on the timestamp field to create matched pairs of total fees and transaction volumes for each day
- **Currency conversion**: Fees are converted from ETH to USD using end-of-day price feeds during the fee aggregation step, ensuring consistent USD valuation
- **Time aggregation**: All data is aggregated to daily boundaries using `timestamp_trunc` function with day granularity
- **Final calculation**: The average transaction fee is calculated using `safe_divide` to divide total daily fees by total daily transaction count, which handles edge cases where transaction count might be zero and prevents division errors

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

Ink

Average transaction fee

Average transaction fee

Competitive landscape

Chain breakdown