What Are ERC20 Fees? A Complete Guide

ERC20 fees are the transaction costs you pay on the Ethereum blockchain whenever you send an ERC20-standard token. These fees — commonly called gas fees — are paid in Ether (ETH), not in the token you are actually transferring. Every time you move USDT, USDC, LINK, or any other ERC20 token, your wallet deducts a small amount of ETH to compensate the validators who process and confirm your transaction.

The term "gas" refers to the unit that measures the computational work required to execute a specific operation on the Ethereum network. Simple ETH transfers consume around 21,000 gas units, while ERC20 token transfers typically require 65,000 units or more, since they involve executing smart contract logic. More complex interactions — such as swapping tokens on a decentralized exchange — can demand 100,000 to 300,000 gas units.

The total fee you pay is calculated by multiplying the gas limit by the gas price, measured in Gwei (where 1 Gwei = 0.000000001 ETH). For example, if the gas price is 10 Gwei and your transfer uses 65,000 gas units, your fee is 650,000 Gwei — or 0.00065 ETH. At an ETH price of $3,000, that works out to approximately $1.95 per transfer.

Gas prices fluctuate constantly based on network demand. During periods of high activity — such as a popular NFT mint or a DeFi event — fees can spike from a few cents to several dollars. Conversely, during off-peak hours (typically late at night or on weekends UTC), fees tend to be significantly lower.

Understanding ERC20 fees is essential for anyone using the Ethereum ecosystem. Whether you are sending stablecoins, interacting with a DeFi protocol, or withdrawing from an exchange, gas fees directly affect the total cost of your transaction. Tools like Etherscan Gas Tracker allow you to monitor real-time Gwei prices before you send.