How Do Transaction Fees Relate to the Concept of Bid-Ask Spread in Trading?

Transaction fees are the cost to execute a transfer of value on the network, while the bid-ask spread is the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask) for an asset. Both represent a cost of transacting.

High network fees can widen the effective cost of a small trade, similar to a wide bid-ask spread.