Gas Fees
Transaction fees paid to blockchain validators for processing and confirming transactions.
Every blockchain transaction requires computational work. Gas fees compensate the validators (or miners) who do that work. You pay gas in the blockchain's native token: ETH on Ethereum and its Layer 2s, SOL on Solana, AVAX on Avalanche.
Gas fees vary dramatically by network. Sending USDC on Ethereum might cost $1-10, while the same transfer on Base or Solana costs less than a penny. Fees also fluctuate based on network congestion. When lots of people are transacting, fees spike.
Choosing the right network for your USDC transfer can save you significant money, especially for smaller amounts.
Related Terms
Blockchain
A distributed, immutable digital ledger that records transactions across a network of computers.
Layer 1 (L1)
The base blockchain network that processes and finalizes transactions on its own. Examples: Ethereum, Solana, Avalanche.
Layer 2 (L2)
A secondary network built on top of a Layer 1 blockchain to increase speed and reduce transaction costs. Examples: Base, Arbitrum, Optimism.
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This definition is provided for educational purposes. USDC.org is an independent resource and is not affiliated with Circle Internet Financial.