Avalanche (AVAX) Faces an Incredible Surge in NFTs After $13.8 Million Surge in NFT Fees

Avalanche (AVAX) recently experienced an extraordinary surge in transaction fees, reaching a staggering $13.8 million over the past five days. So, this surge primarily revolves around the minting of inscription-based tokens and NFTs. Furthermore, it also comes with facilitating various transactions within the ecosystem. The development of these inscription-based tokens is by embedding code into regular blockchain transactions. Then, an entity can employ an off-chain numbering system for tracking.

Avalanche (AVAX) Inscription Craze: A Cost-Effective Solution

• Originally stemming from the Bitcoin network’s absence of native support for tokens, inscriptions emerged as a makeshift solution. However, this approach swiftly gained attraction across multiple blockchain ecosystems. Apparently, this was mainly due to its cost-effectiveness in comparison to native tokens. Avalanche (AVAX) stands out despite other leading networks like Polygon and BNB Chain creating millions of inscription-based tokens. Coupled with users collectively contributing approximately $1 million in fees for each chain.

Avalanche’s Transaction Fee Surge to $5.6 Million Daily

Image from Dune Analytics 

• Recent data from the Dune Analytics dashboard unveiled Avalanche’s transaction fees skyrocketing to $5.6 million per day. So, this was according to the presentations by Hildobby from the VC firm Dragonfly. Moreover, this figure accounted for roughly 70% of all fees across the monitored blockchain ecosystem. Thereby drawing huge attention to the platform.

Rising Interest and Burning Dynamics in Avalanche Ecosystem

• Avalanche (AVAX) experienced two notable periods of hype related to inscriptions. Initially, during a five-day period in late November, fees amounted to about $1.5 million. However, recent times witnessed significantly higher fees due to increased Avax prices and heightened activity. Failed transactions played a role in increasing demand for block space. Also contributing to the growing transaction costs that surpassed 5,000 nAVAX per transaction on December 18.

Avalanche (AVAX) Dominance in Inscription-Based Transactions

• Avalanche (AVAX) ranks third in inscription-related transactions, processing a total of 61 million. So, it is trailing behind BNB Chain with 77 million and Polygon PoS with 161 million transactions. Furthermore, the platform hosts over 1,160 inscription collections, showcasing its rising prominence. Additionally, the number of addresses actively participating in inscription-related activities has surged, indicating an expanding user base.

Unprecedented Surge in Burnt Avalanche (AVAX): A Record-Breaking Week

Image from Coinmarketcap 

• Last week, the Avalanche network experienced an unparalleled surge in burnt crypto AVAX. Apparently, the total was an astounding $16.7 million. Furthermore, this figure marked a tenfold increase from the previous week, setting a new milestone for weekly AVAX token burning.  The surge in burnt fees primarily stems from escalated activity in minting. Also, the transmitting of transactions within the Avalanche ecosystem contributes to this.

• Notably, there was 439,000 Avalanche (AVAX) burning within a week. Consequently, this represents a notable 3.47% reduction in the token’s circulating supply. Avalanche’s fee mechanism, inspired by Ethereum’s EIP-1559 design, eliminates transaction fees entirely. Apparently, this is unlike Ethereum’s partial allocation of fees to validators.

 Conclusion

The surge in burnt Avalanche (AVAX) signifies a transformative period within the Avalanche network, driven by inscription-based transactions. Apparently, this surge highlights not only the evolving transaction sphere but also the important role of inscription-based transactions in shaping decentralized ecosystems’ future.

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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 the company.