The Surge in OKT’s Price
OKT, the native token for OKT Chain, experienced a significant surge in price, rising by 80% in the past 24 hours. The price reached a 9-month high of $30 before retracing to $25.
Reasons Behind the Surge
The surge in OKT’s price can be attributed to the increased interest in the inscription-minting event hosted on the OKT Chain. Inscriptions on layer-1 blockchain networks like OKT Chain involve storing metadata within blockchain transactions, creating non-fungible tokens (NFTs) through smart contracts.
Network Congestion and Fees
The heightened network activity on the OKT Chain led to significant network congestion, with around 100,000 pending transactions. The increased traffic also caused an outage for the OKX Web3 wallet. Additionally, the average transaction fee spiked to 0.00074 OKT during this period.
Growth of Inscriptions Adoption
Inscriptions are driving transactions on various EVM-compatible blockchains, including TON, Near Protocol, and Polygon. However, they have faced criticism due to network congestion and increasing transaction fees.
The Impact of Inscriptions
Gas fees for inscription transactions reached over $800,000 two weeks ago and have consistently been over $500,000. Some community members argue that inscriptions disrupt basic metrics and go against EVM design decisions.
Hot Take: Inscriptions Driving Crypto Transactions but Face Challenges
The surge in OKT’s price highlights the growing interest in inscription-minting events on blockchain networks. While inscriptions are driving transactions and offering benefits like lower gas costs, they also face challenges such as network congestion and increased fees. It remains to be seen how the adoption of inscriptions will evolve in the crypto space.
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