Gas price is a crucial term on the Ethereum network that defines how much you are willing to pay for each gas unit (gas unit) needed to execute a transaction. Unlike gas limit (the maximum number of gas units you’re willing to consume), gas price is the price per unit, and this price fluctuates constantly depending on the supply and demand on the network. The price of gas is expressed in Gwei, a subunit of the Ether (ETH). Note that 1 Gwei = 0.000000001 ETH.
Why is Gas Price important?
- Transaction speed: A higher gas price will generally ensure that your transaction is more quickly included in a block and processed faster. If you set the price too low, your transaction could remain in the “mempool” (waiting zone) for a long time or even fail due to expiration.
- Total cost: The price of gas is directly proportional to the total cost of the transaction. A high gas charge can make a small transaction unprofitable.
Curious to know how much a particular cryptocurrency now costs and how it has evolved? The solution is our dedicated page: cryptocurrency price.