Ethereum layer-2 solution Polygon recently witnessed an extraordinary surge in gas fees. It topped the charts with an increase of over 1,000%. This spike, peaking at $0.10, was primarily driven by POLS minting activity.
Understanding the Surge: A Closer Look at POLS Minting
Polygon’s founder, Sandeep Nailwal, expressed his astonishment over this sudden rise in transaction fees in a social media post. He attributed this unexpected uptick to the launch of a fresh non-fungible token (NFT) collection based on the Polygon network. The core of this surge was rooted in a wave of excitement around minting the novel POLS token.
Data from Dune Analytics painted a vivid picture of the situation. It reveals that the frenzy of minting POLS coincided with the usage of more than 102 million MATIC tokens. These tokens, valued at around $86 million at current market prices, were utilized as gas during this period of heightened activity.
The POLS token operates on a protocol known as PRC-20. This protocol functions similarly to the BRC-20 token standard, a derivative of the Bitcoin Ordinals. This innovative approach underpins the unique characteristics of the POLS token within the cryptocurrency ecosystem.
Minting Metrics: A Glimpse into Token Distribution
Intriguing data from Ethereum Virtual Machine (EVM) data providers indicated that only a fraction – precisely 8.7% – of the total POLS supply has been minted to date. That has resulted in over 18,100 distinct owners staking their claim on the token. This statistic underscores the nascent yet rapidly growing interest in POLS within the crypto community.
While Polygon’s gas fees have normalized following this spike, the possibility of future fluctuations remains a topic of interest for investors and users alike. The network’s adaptability to changing demands and its response to emerging trends in the NFT and token space will be critical in shaping its trajectory