Avalanche Users Burn 439,000 AVAX Worth $16.7 Million in a Week
Avalanche users have burned 439,000 AVAX, worth $16.7 million, over the last week when making transactions. This has resulted in a reduction of the token’s circulating supply.
All Transaction Fees on Avalanche Network Are Burned
On the Avalanche network, all transaction fees are burned. Unlike Ethereum, where part of the transaction fee is paid to validators and the rest is burned, Avalanche burns both parts of the transaction fee.
Spike in Burned Fees on Avalanche Network
The spike in burned fees on the Avalanche network is significant. In previous months, only a few thousand AVAX would be burned each week. However, there was a spike to 85,000 AVAX at the end of November and then 40,000 AVAX two weeks later. This week’s burn surpasses all previous records.
Rise of Inscriptions Drives Surge in Burned Fees
The surge in burned fees is largely attributed to the rise of inscriptions across Avalanche and other blockchains. Inscription-related transactions account for 75% of the transaction fees paid and burned on Avalanche over the last week. Users paid $13.8 million in fees for these transactions.
Inscription-Based Tokens and Their Growing Popularity
Inscription-based tokens were initially created as a workaround on the Bitcoin network due to its lack of native support for tokens. They involve writing text in normal blockchain transactions and using an off-chain numbering system to track them. These tokens have spread to other blockchains because they can be cheaper to move around than native tokens.
Total AVAX Burned Through Transactions
So far, a total of 3.4 million AVAX has been burned through transactions, equivalent to $129 million at current prices.
Hot Take: Avalanche Users Burn Record Amount of AVAX in a Week
Avalanche users have set a new record by burning 439,000 AVAX in just one week. This surge in burned fees is driven by the rise of inscriptions on Avalanche and other blockchains. Inscription-related transactions account for a significant portion of transaction fees paid and burned on Avalanche. The popularity of inscription-based tokens has grown as they provide a cheaper alternative to native tokens. With a total of 3.4 million AVAX burned through transactions, the value lost amounts to $129 million. This trend showcases the increasing activity and usage of Avalanche’s network.
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