- Gas fees on the Ethereum layer-2 Polygon network surged over 1,000% due to a frenzy of minting the POLS token, inspired by the Ordinals collection.
- The surge in network activity coincided with the utilization of over 102 million MATIC tokens as gas fees.
- Despite the spike, gas fees on the Polygon network have since stabilized, signaling the potential for growth and scalability within the ecosystem.
Gas fees on the Ethereum layer-2 Polygon network experienced an unprecedented surge of over 1,000%, reaching a peak of $0.10. This surge was driven by a wave of users minting tokens inspired by the popular Ordinals collection, known as POLS tokens.
Unprecedented Transaction Activity and Gas Fee Spike
In a recent X (formerly Twitter) post, Polygon founder Sandeep Nailwal expressed his surprise at the significant increase in transaction activity on the network. Nailwal speculated that the spike might be attributed to the launch of a new Polygon-based non-fungible token (NFT) collection.
The surge in network activity and gas fees can be primarily attributed to the enthusiasm surrounding the minting of the new POLS token.
Minting Activity and MATIC Token Usage
Data from Dune Analytics revealed a substantial rush of minting activity for POLS tokens, coinciding with the utilization of over 102 million MATIC tokens (equivalent to approximately $86 million at current prices) as gas fees.
The POLS token is built on the PRC-20 protocol, which operates similarly to the Bitcoin Ordinals-derived BRC-20 token standard.
Distribution and Ownership of POLS Tokens
According to data from Ethereum Virtual Machine data provider EVM, only 8.7% of the total POLS supply has been minted thus far, with just over 18,100 owners claiming the token. This suggests a considerable growth potential for the POLS token as more users participate in its minting and ownership.
Gas Fee Stabilization and Return to Normalcy
Since the peak surge, Polygon gas fees have returned to typical levels, currently settling at around 882 gwei. Gas fees represent the computational effort required to execute transactions on a blockchain, with 1 gwei approximately equal to 0.000000001 MATIC.
A Parallel with the Bitcoin Network
The Bitcoin network experienced a similar surge in activity, albeit more sustained, following the introduction of the Ordinals protocol. This protocol allowed users to directly mint NFTs on the Bitcoin blockchain.
The subsequent frenzy for Ordinals NFTs and BRC-20 tokens led to heightened Bitcoin fees, reaching levels not seen since April 2021. This development sparked debates among traditional Bitcoin proponents, who criticized the NFT protocol and token standard as wasteful.
The surge in gas fees on the Polygon network, driven by the minting frenzy surrounding POLS tokens, highlights the growing interest in blockchain-based tokens and NFTs. While the fees have since stabilized, the enthusiasm and participation in token minting indicate a strong demand for innovative projects within the Polygon ecosystem. As users continue to explore new token standards and engage in NFT collections, the blockchain landscape is witnessing dynamic shifts with potential implications for scalability and network congestion. The Polygon network’s ability to adapt and manage these challenges will be crucial in maintaining a vibrant and efficient ecosystem for its users.
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.