# Gas Fee

*Crypto & Digital Assets — Finicade finance glossary*

A gas fee pays for the computation a transaction consumes, priced by network demand. Fees rise when blockspace is scarce, which is why a simple swap can cost a few cents on a quiet day and a hundred dollars during a frenzy. Ethereum now burns part of each fee, making the supply deflationary during periods of heavy use — a monetary policy set by congestion.

**Also known as:** gas, transaction fee, gwei

**Related terms:** [Ethereum](https://finicade.com/glossary/ethereum), [Layer 2](https://finicade.com/glossary/layer-2), [Mempool](https://finicade.com/glossary/mempool), [MEV](https://finicade.com/glossary/mev), [Rollup](https://finicade.com/glossary/rollup)

Source: https://finicade.com/glossary/gas-fee