Polygon (MATIC) Gas Fees Skyrocket Amid Surge in POLS Token Minting
Summary:
Ethereum layer-2 Polygon (MATIC) saw a significant 1,000% increase in gas fees due to a surge in minting of the Ordinals-inspired POLS tokens. The spike in network activity, primarily driven by enthusiasm for the new POLS token, led to the use of over 102 million MATIC tokens as gas. Although the Polygon gas fees have since stabilized, this incident mirrors a similar situation on the Bitcoin network earlier this year, triggered by the introduction of Ordinals protocol.
The Ethereum layer-2 Polygon (MATIC) experienced a drastic surge in gas fees, which increased by over 1,000% to peak at $0.10, as a wave of POLS tokens, inspired by Ordinals, were minted within the network. Polygon founder Sandeep Nailwal expressed his astonishment at the significant transaction activity on the network through a Nov. 16 X post (formerly Twitter), hinting that the spike might be due to a newly launched nonfungible token (NFT) collection based on the Polygon platform.
The sharp increase in network activities and sudden rise in gas fees seems to be primarily triggered by the excitement surrounding the issuance of the new POLS token. According to data from Dune Analytics, this fervor for POLS token minting coincided with the usage of over 102 million MATIC tokens — equivalent to $86 million at current rates— as gas. The creation of POLS led to the utilization of MATIC worth over $86 million as gas.
POLS token operates on a protocol labeled PRC-20, which works in a similar fashion to the Bitcoin Ordinals-derived BRC-20 token standard. Data received from Ethereum Virtual Machine (EVM) shows that only 8.7% of the total POLS supply has been issued, with slightly more than 18,100 owners having claimed the token.
As of the time this report was filed, Polygon gas fees have returned to normal levels, settling at around 882 gwei. In blockchain terms, gas fees measure the computational effort required to process a transaction, with 1 gwei equalling roughly 0.000000001 MATIC.
Similarly, the Bitcoin network witnessed a surge in activity, albeit for a longer period, in May this year following the introduction of the Ordinals protocol, which facilitated the minting of NFTs directly onto the Bitcoin blockchain. The subsequent excitement for Ordinals NFTs and BRC-20 tokens resulted in Bitcoin fees reaching amounts unseen since April 2021, a situation deemed wasteful by traditional Bitcoin supporters like Samson Mow and Adam Back.
Published At
11/17/2023 1:45:50 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.