Polygon gas fees spike 1000% amid Ordinals-inspired token craze

The reason for the uptick in network activity and abrupt spike in gas fees appears to be coming primarily from a frenzy of enthusiasm for minting the brand-new POLS token. POLS caused more than $86 million of MATIC to be utilized as gas.The POLS token is developed on a protocol called PRC-20, which runs likewise to the Bitcoin Ordinals-derived BRC-20 token standard. The taking place 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 procedure and token standard as inefficient.

Gas costs on Ethereum layer-2 Polygon (MATIC) rose more than 1,000% to reach a peak of $0.10 as users flooded the network with the minting of Ordinals-inspired tokens dubbed POLS. In a Nov. 16 X (formerly Twitter) post Polygon creator Sandeep Nailwal shared his surprise at the elevated transaction activity on the network stating the spike couldve been due to the launch of a new Polygon-based nonfungible token (NFT) collection. What is going on @ 0xPolygon POS chain? 6m transactions in last 24 hrs. 170 TPS usually. 1mn+ MATIC burnt by the procedure. The chain worked efficiently, gas costs went insane though but no reorgs or 0 blocks etc I hear there is some video game Baby Shark Launching, might that be the …– Sandeep Nailwal

The factor 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. Dune Analytics data showed the rush of minting activity for POLS corresponded with more than 102 million MATIC tokens– worth $86 million at current rates– being used as gas. POLS triggered more than $86 countless MATIC to be used as gas.The POLS token is constructed on a protocol dubbed PRC-20, which runs likewise to the Bitcoin Ordinals-derived BRC-20 token requirement. According to information from Ethereum Virtual Machine data supplier EVM, just 8.7% of the overall POLS supply has actually been minted, with simply over 18,100 owners claiming the token. Related: Bitcoin Ordinals see renewal from Binance listingAt the time of publication, Polygon gas charges have actually given that returned to typical levels, settling at around 882 gwei. Gas costs measure the quantity of calculating effort required to carry out a transaction on a given blockchain, with 1 gwei equal to roughly 0.000000001 MATIC.Polygon gas costs have actually given that returned to slightly above-average levels. Source: LivdirThe Bitcoin network experienced a similar, albeit more extended, 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. The ensuing frenzy for Ordinals NFTs and BRC-20 tokens saw Bitcoin costs reach levels not considering that April 2021, a development that saw more traditionally-minded Bitcoiners such as Samson Mow and Adam Back cast down the NFT procedure and token standard as inefficient. Publication: Breaking into Liberland– Dodging guards with inner-tubes, decoys and diplomats

Other Questions People Ask

What caused the Polygon gas fees to spike 1000% amid the Ordinals-inspired token craze?

The spike in Polygon gas fees, which rose over 1,000% to a peak of $0.10, was primarily driven by a surge in network activity related to the minting of the new POLS token. This frenzy resulted in more than 102 million MATIC tokens being utilized as gas, reflecting the overwhelming demand for POLS. The excitement surrounding this token, developed on the PRC-20 protocol similar to Bitcoin's BRC-20 standard, led to significant congestion on the network.

How did the minting of POLS tokens impact Polygon's network activity?

The minting of POLS tokens significantly increased Polygon's network activity, with reports indicating over 6 million transactions within a 24-hour period. This surge in transactions overwhelmed the network, causing gas fees to spike dramatically. The heightened activity was noted by Polygon's creator, Sandeep Nailwal, who mentioned that while the chain operated efficiently, the gas costs soared due to the influx of users minting POLS.

What is the relationship between POLS and the BRC-20 token standard?

POLS is developed on the PRC-20 protocol, which operates similarly to Bitcoin's BRC-20 token standard. This connection has fueled interest and activity among users familiar with Ordinals NFTs and BRC-20 tokens, contributing to the recent spike in Polygon gas fees. As users rush to mint POLS tokens, the demand for transaction processing on the Polygon network has surged, leading to increased gas costs.

What are the current gas fee levels on Polygon after the spike?

Following the dramatic spike in gas fees due to the minting frenzy of POLS tokens, Polygon's gas charges have returned to more typical levels, settling around 882 gwei. This decrease indicates that the initial surge in activity has subsided, allowing for a more stable transaction environment. However, the recent spike serves as a reminder of how quickly network dynamics can change based on user interest in new tokens.

How does the recent spike in Polygon gas fees compare to past events on other networks?

The recent spike in Polygon gas fees mirrors earlier events seen on the Bitcoin network during the launch of the Ordinals protocol, which also led to significant increases in transaction costs. In May, Bitcoin experienced a similar surge in activity as users minted NFTs directly onto its blockchain. This pattern highlights how new token launches and NFT trends can create sudden and dramatic shifts in network congestion and associated fees across different blockchain platforms.