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InfluxDB
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How is the gas-price calculated? It’s calculated in gwei, which you probably heard of. 1 gwei = 0.000000001 ETH. Every transaction to make on the ETH network cost a fixed amount of gwei + a variable amount of gwei. A bunch of transactions are packed into a block. These blocks have a size, depending on the amount of transactions that are packed into it. If the network activity goes up, so does the blocksize and so does the base fee and variable fees. This would mean: the more popular the Ethereum network becomes and people use it, the higher the blocks are to compute the transactions, the higher the base fees and variable fees become. The fees are calculated as a % of the value of Ethereum. So there is always a direct correlation between the gas fees and the price of Ethereum. On top, the fees are an essential part of keeping the network secure. You can also leave a tip, so a miner has an incentive to make your transaction happen before others, but I will leave that out of this story for now too. I will leave the update of the Ethereum network out of it too, but if you want to read more, there is a lot to read on www.ethereum.org. This is, for all you visual people, what a block looks like: