MATIC, Polygon’s native cryptocurrency, experienced a significant gas fee spike, surging over 1,000% to reach $0.10. This surge was triggered by users actively mining POLS tokens, inspired by Bitcoin Ordinals, on the network’s PRC-20 protocol.
The POLS token closely mirrors the BRC-20 token derived from Bitcoin Ordinals. According to EVM (Ethereum Virtual Machine) data, 18,100 individuals have claimed the token, and only 8.7% of the total POLS supply has been minted so far.
Polygon Founder Surprised by Surge in Transaction Activity
Sandeep Nailwal, the founder of Polygon, expressed astonishment at the sudden spike in transaction activity on the network. He speculated that this surge could be attributed to the launch of a new NFT collection on the Polygon network.
According to data from Dune Analytics, the increase in POLS token minting coincided with an extensive use of over 102 million MATIC tokens. The associated gas fees for these minted tokens amounted to a staggering total of approximately $86 million.
What is going on on @0xPolygon POS chain? 6m transactions in last 24 hrs. 170 TPS on average. 1mn+ MATIC burnt by the protocol. The chain worked smoothly, gas fees went crazy though but no reorgs or 0 blocks etc.
I hear there is some game Baby Shark Launching, could that be the…
— Sandeep AggLayer. polygon 💜 (@sandeepnailwal) November 16, 2023
Fluctuating Gas Fees and Stabilization and Impact on MATIC Value
Polygon’s gas fees experienced a significant surge during the peak of this heightened activity. However, they have since returned to normal levels, stabilizing at around 882 gwei.
To put this surge into perspective, 1 gwei is roughly equivalent to 0.000000001 MATIC. This metric underscores the magnitude of the surge, spanning from 0.000000001 MATIC to 0.10 MATIC.
Polygon Co-founder Jaynti Kanani’s Departure
In October, Jaynti Kanani, co-founder of Polygon, disclosed that he had left the India-based blockchain network nearly six months prior. Despite embarking on “new adventures,” Kanani remains optimistic about the prospects of Polygon 2.0.
After kickstarting Polygon in 2017, around 6 months back, I decided to step back from the day-to-day grind.
I'm more confident in Polygon's bright future and passionate community. I'll be focusing on new adventures while still cheering and contributing to Polygon from the…
— Jaynti Kanani (JD) (@jdkanani) October 4, 2023
Kanani now joins a growing list of executives who have departed from prominent cryptocurrency projects in recent months. This trend raises questions about the evolving dynamics within the crypto industry and the factors influencing such transitions.
Challenges for Polygon
Meanwhile, Polygon has faced mounting challenges. On November 14, notable figures in the crypto space, including Tron founder Justin Sun, withdrew over 764,740 MATIC from Binance. The total value of this withdrawal amounted to approximately $750,000, signaling potential shifts and developments within the Polygon ecosystem. The departure of significant stakeholders adds an additional layer of complexity to the ongoing narrative surrounding Polygon’s trajectory in the crypto market.
The recent surge on Polygon reflects a prolonged activity spike reminiscent of Bitcoin’s experience in May during the release of the Ordinals protocol. Polygon appears to be drawing significant parallels with Bitcoin’s historical patterns.
BTC Ordinals Launch and Fee Surge
The launch of BTC Ordinals allowed users to directly mine NFTs onto the Bitcoin blockchain, resulting in a substantial surge in transaction fees. This mirrors the recent activity on Polygon, suggesting a shared impact from innovative protocols within the crypto space.
Critics have voiced concerns about the environmental impact of NFT protocols and token standards, labeling them as wasteful. The ongoing debate highlights the need for sustainable practices within the blockchain and NFT ecosystems, prompting discussions about the environmental implications of such protocols.
Despite criticism, the impact of projects like POLS on Layer-2 solutions, such as Polygon, remains a subject of fascination within the crypto community. As blockchain technology continues to evolve, the interplay between different protocols and their effects on scalability and sustainability remains a key area of interest and exploration.
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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