- Polygon’s daily transaction volume soared to 6.1 million, causing gas fees to spike over 7,000 Gwei, largely due to the large-scale minting of PRC-20 tokens.
- PRC-20 tokens, similar to Bitcoin’s Ordinals, are created using transactional calldata on Polygon, representing a unique approach to token and NFT creation.
Surge in Polygon’s Network Activity
The Polygon network, an established Ethereum sidechain, has recently witnessed a record-breaking increase in daily transactions. This surge, escalating transaction numbers from 2.89 million to a historic peak of 6.1 million, has consequently led to a significant rise in gas fees over the last 24 hours.
The PRC-20 Token Effect
This unprecedented spike in network activity and transaction costs is attributed to the large-scale minting of a new type of tokens termed “PRC-20.” These tokens, inspired by the Ordinals protocol on the Bitcoin network, have ushered in a novel approach to token and NFT creation on the Polygon blockchain.
Unlike the typical ERC-20 token standard, PRC-20 tokens utilize transaction calldata within the Polygon network. This methodology allows for the generation of tokens or unique NFT-like image artifacts, which are embedded directly within network transactions. The concept mirrors Bitcoin’s Ordinals, where data is inscribed onto individual satoshis, but PRC-20 employs a distinct strategy suited for the Polygon ecosystem.
This new token minting process has led to a significant increase in transactional activity, pushing the average transaction costs on Polygon to over 7,000 Gwei, a stark increase from the usual 100 Gwei. Although these costs have since reduced to around 400 Gwei, they reached as high as $5 for token swaps during the peak, a substantial rise from the network’s typical rates. Despite this surge, the transaction costs on Polygon remained lower than those on the Ethereum mainnet, where token swaps can cost between $30 to $50.
The introduction of PRC-20 tokens represents a pioneering step in blockchain technology, showcasing the versatility and adaptability of the Polygon network. By integrating concepts from Bitcoin’s Ordinals, Polygon continues to expand its capabilities, offering users innovative ways to create and interact with digital assets. This trend of incorporating unique token standards like PRC-20 not only enhances the functionality of the Polygon network but also paves the way for new forms of digital asset creation and utilization.