Avalanche Users Pay $13.8 Million in Transaction Fees for Inscriptions
Inscription-based tokens have gained popularity as users paid $13.8 million in transaction fees on Avalanche over the last five days to mint and move tokens and NFTs created with inscriptions. These tokens are created by writing text in normal blockchain transactions and using an off-chain numbering system to keep track of them. They were initially used as a workaround on the Bitcoin network due to its lack of native support for tokens, but have since spread to other blockchains. The lower cost of moving inscription-based tokens compared to native tokens has contributed to their adoption.
Transaction Fees on Avalanche Rise
Avalanche has seen a significant increase in transaction fees spent on inscriptions, reaching as high as $5.6 million per day in recent days. This surge in fees is attributed to a rise in non-inscription transactions, resulting in increased overall demand for block space. Transaction costs have been steadily climbing this month, with gas prices exceeding 5,000 nAVAX on December 18. Avalanche has processed 61 million inscription-related transactions and hosts over 1,160 inscription collections.
Activity Increases Across Blockchains
In addition to Avalanche, users on Arbitrum have also experienced an increase in transaction fees for inscription-based tokens, with around $3 million spent over the last three days. While the total number of inscriptions across all blockchains remains stable, there has been a sharp rise in the number of addresses used for making inscriptions. Previous high days involved around 50,000 addresses, but recently there have been 180,000 addresses involved in inscription-related transactions.
Miners and Validators Benefit from Increased Network Activity
The sudden spread of inscriptions brings extra income for miners and validators as long as they can handle the increased network activity. The popularity of inscription-based tokens highlights the demand for more cost-effective ways to create and move tokens on blockchains.
Hot Take: Inscription-Based Tokens Gain Momentum with Avalanche Leading the Way
Avalanche’s success in attracting users to mint and move inscription-based tokens showcases the potential of this token creation method. The lower transaction fees compared to native tokens make inscription-based tokens an attractive option for users across various blockchains. As activity continues to increase, it will be interesting to see how other blockchains adapt and optimize their networks to accommodate the growing demand for inscription-based tokens. The rise of inscriptions marks a significant development in the evolution of token creation and movement within the crypto space.
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