Polkadot (DOT) is going through a significant increase in transactions, which is considered an unusual event for the protocol. On-chain data reveals that Polkadot has hit a historic high for its daily transactions, surpassing the 1,000,000 mark.
Before this significant surge, the highest number of transactions Polkadot had recorded was 941,000 on May 5, 2021. The previous increase in transactions was a natural adoption of the blockchain. However, the current surge is particularly influenced by the introduction of Inscriptions.
1 Million transactions today on the Polkadot relay chain.
This is the highest activity day on Polkadot in history, topping out the 941,000 transactions on May 5, 2021.
The activity is due to inscriptions. pic.twitter.com/BYoMBREbyd
— asynchronous rob (@rphmeier) December 21, 2023
Ordinal Inscriptions
Inscriptions, introduced earlier this year on the Bitcoin (BTC) blockchain, serve as the foundation for creating digital collections registered on the smallest components of the blockchain. Their debut led to a significant increase in both transaction count and miner revenue for Bitcoin. Recognizing the significance of these Ordinals, they have extended to other major Layer 1 blockchains, including Litecoin (LTC).
Now, Ordinal Inscriptions have become a trend in the Web3.0 ecosystem, influencing sentiment on various protocols beyond Polkadot. Several blockchains currently experiencing the impact of Inscriptions include Avalanche (AVAX), Arbitrum (ARB), and Shiba Inu’s Shibarium.
Polkadot Transaction Surge Propels Price Recovery
The recent surge in total transactions on the Polkadot protocol has driven the coin’s price up by 8.96% in the last 24 hours, reaching $7.54. This surge effectively wipes out the losses incurred in the past week, pushing gains to 3.13% for this period.
Fueled by the impact of Ordinal Inscriptions, Polkadot may be poised to retest the $8 price level. Achieving this milestone would not only represent its highest point for the year but also mark the most significant increase since mid-August 2022. This potential success is bolstered by other notable innovations taking place within the Polkadot ecosystem.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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