Surge in Gas Fees on Polygon (MATIC) Network
The gas fees on Ethereum layer-2 Polygon (MATIC) experienced a significant surge, increasing more than 1,000% to reach a peak of $0.10 due to the high volume of users minting POLS tokens. This surge in transaction activity also coincided with the launch of a new Polygon-based nonfungible token (NFT) collection, causing founder Sandeep Nailwal to express surprise at the elevated network activity.
The POLS token, built on the PRC-20 protocol, has seen a rush of minting activity, with over 102 million MATIC tokens — valued at $86 million — being used as gas for this process. Currently, only 8.7% of the total POLS supply has been minted, with just over 18,100 owners claiming the token.
Gas fees have since returned to typical levels, settling at around 882 gwei. This surge in network activity and gas fees is reminiscent of the Bitcoin network’s spike in May following the release of the Ordinals protocol, which allowed users to mint NFTs directly onto the Bitcoin blockchain.
Hot Take: Implications of Elevated Gas Fees
The sudden surge in gas fees on Polygon’s network reflects the growing enthusiasm and demand for minting new tokens and NFTs, indicating the potential for increased adoption and usage of blockchain-based assets. However, it also highlights the need for scalability solutions to address congestion and rising transaction costs within these networks.
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