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During The Token Frenzy Spurred by Ordinals, Polygon's Gas Prices Surged by 1,000%

2023-11-17 15:58:10

Following the frantic rush to mint POLS, a token influenced by Ordinals, gas rates on the Polygon network rose as much as $0.10.


Layer-2 gas costs on Ethereum As users flooded the network with Ordinals-like tokens called POLS, which were inspired by the cryptocurrency, Polygon rose by over 1,000 percent to reach a peak of $0.10. Polygon creator Sandeep Nailwal expressed his amazement at the increased volume of transactions on the network in an article published on Nov. 16 on X (previously Twitter). He speculated that the surge could have been caused by the introduction of an additional set of nonfungible tokens (NFTs), which are created by Polygon.

Excitement for minting the most recent POLS token appears to be the primary cause of the abrupt surge in gas prices and increase in network traffic. According to Dune Analytics information, the spike in POLS minting operations was accompanied by the use of almost 102 million MATIC tokens, which are now valued at $86 million, as gas. The POLS coin is based on the PRC-20 protocol, functioning comparable to the BRC-20 token norm, which was developed by Bitcoin Ordinals. Less than 18,100 POLS holders have claimed the token, representing just 8.7% of the entire supply, based on statistics from the Ethereum Virtual Machine information source EVM.

As of the moment of writing, Polygon gas prices have stabilized at around 882 gwei, back to normal. On a particular blockchain, gas costs measure the computational work required to complete a transaction; one gwei is equivalent to around 0.000000001 MATIC. An identical, although longer-lasting, surge in traffic was seen on the network running Bitcoin in May of this year after the Ordinals protocol was released. This system enabled users to create NFTs straight into the Bitcoin blockchain.

Bitcoin costs reached levels not seen since April 2021 during the subsequent rush for Ordinals NFTs and BRC-20 tokens. As a result, more conventionally inclined Bitcoiners, like Samson Mow and Adam Back, criticized the NFT protocol and token specification as being inefficient.

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