Why Do I Need ETH on Base, Arbitrum, and Other Layer 2s?
Every Network Has Its Own Fee Coinâ
To send anything on a blockchain, including tokens like USDC or USDT, you pay a network fee in that network's own coin.
Ethereum layer 2 networks, such as Base, Arbitrum, and Optimism, use ETH for fees. But it has to be ETH on that layer 2. ETH on Ethereum, or on another layer 2, can't pay fees on Base.
So if you hold USDC on Base and no ETH on Base, you'll see a message like:
Insufficient ETH balance to cover network fees.
Which Coin Pays Feesâ
| Network | Fee coin |
|---|---|
| Ethereum | ETH on Ethereum |
| Base, Arbitrum, Optimism, Linea, zkSync, Unichain, Ink, World Chain | ETH on that network |
| Polygon | POL |
| BNB Chain | BNB |
| Avalanche C-Chain | AVAX |
| HyperEVM | HYPE |
| Arc | USDC |
Each layer 2's ETH shows as a separate asset in Gem Wallet, with the network's badge on the ETH logo. Fees on layer 2s are usually a small fraction of Ethereum's, so a little ETH goes a long way.
How to Get ETH on a Layer 2â
When you don't have enough of the fee coin, Gem Wallet offers Get ETH (or the network's coin) with three options:
- Buy with a card or bank transfer. See How to Buy Crypto with Gem Wallet.
- Swap from other assets in your wallet, for example USDC on Base to ETH on Base, or ETH from another network with a cross-chain swap.
- Receive ETH on that network from another wallet or an exchange. Make sure the sender picks the same network. See How to Select the Correct Network When Receiving Crypto.
When withdrawing from an exchange to a layer 2, withdraw a small amount of ETH on the same network along with your tokens, so you can move them later.
Why You Can't Use ETH from Another Networkâ
Each layer 2 is its own blockchain with its own balances. Your address is the same on all EVM networks, but the ETH on Ethereum and the ETH on Base are separate balances on separate chains. To move ETH between them, use a cross-chain swap or bridge.