{"id":183745,"date":"2023-11-17T03:39:23","date_gmt":"2023-11-17T03:39:23","guid":{"rendered":"https:\/\/precoinnews.com\/?p=183745"},"modified":"2023-11-17T03:39:23","modified_gmt":"2023-11-17T03:39:23","slug":"polygon-gas-fees-spike-1000-amid-ordinals-inspired-token-craze","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/polygon-gas-fees-spike-1000-amid-ordinals-inspired-token-craze\/","title":{"rendered":"Polygon gas fees spike 1000% amid Ordinals-inspired token craze"},"content":{"rendered":"
Gas fees on Ethereum layer-2 Polygon (MATIC) surged more than 1,000% to reach a peak of $0.10 as users inundated the network with the minting of Ordinals-inspired tokens dubbed POLS.\u00a0<\/p>\n
In a Nov. 16 X (formerly Twitter) post Polygon founder Sandeep Nailwal shared his surprise at the elevated transaction activity on the network saying the spike could\u2019ve been due to the launch of a new Polygon-based nonfungible token (NFT) collection. <\/p>\n
The reason for the uptick in network activity and sudden spike in gas fees seems to be coming mainly from a frenzy of enthusiasm for minting the new POLS token. <\/p>\n
Dune Analytics data showed the rush of minting activity for POLS coincided with more than 102 million MATIC tokens \u2014 worth $86 million at current prices\u2014 being used as gas. <\/p>\n
<\/p>\n
The POLS token is built on a protocol dubbed PRC-20, which operates similarly to the Bitcoin Ordinals-derived BRC-20 token standard. <\/p>\n
According to data from Ethereum Virtual Machine data provider EVM, only 8.7% of the total POLS supply has been minted, with just over 18,100 owners claiming the token. <\/p>\n
Related: <\/em><\/strong>Bitcoin Ordinals see resurgence from Binance listing<\/em><\/strong><\/p>\n At the time of publication, Polygon gas fees have since returned to typical levels, settling at around 882 gwei. Gas fees quantify the amount of computing effort needed to conduct a transaction on a given blockchain, with 1 gwei equal to approximately 0.000000001 MATIC.<\/p>\n <\/p>\n The Bitcoin network witnessed a similar, albeit more prolonged, spike in activity in May this year following the release of the Ordinals protocol, which allowed users to mint NFTs directly onto the Bitcoin blockchain. <\/p>\n The ensuing frenzy for Ordinals NFTs and BRC-20 tokens saw Bitcoin fees reach levels not since April 2021, a development that saw more traditionally-minded Bitcoiners such as Samson Mow and Adam Back cast down the NFT protocol and token standard as wasteful. <\/p>\n Magazine: <\/em><\/strong>Breaking into Liberland \u2014 Dodging guards with inner-tubes, decoys and diplomats<\/em><\/strong><\/p>\n