The release of tokens like Ordinals causes an increase in commissions at Polygon

Acryptoinvest.news: The Polygon network, a widely used Ethereum sidechain, has seen a record increase in daily transactions, leading to a significant increase in gas fees over the past 24 hours.

Online activity surged with transactions rising from 2.89 million to an all-time high of 6.1 million from November 14 to 15, the highest since October last year. According to Polygonscan, this increase in network usage triggered a sharp rise in transaction costs, with average transaction costs rising to more than 7,000 Gwei (from 100 Gwei the day before) before falling to around 400 Gwei.

Increased transaction costs, especially for swapping tokens on the blockchain, have risen to $5 per swap, significantly higher than normal on-chain rates. That figure has now dropped to less than $0.50.

However, even as transaction fees increased, the cost of transactions on the Polygon network remained lower than on the Ethereum mainnet, where token exchange costs can range from $30 to $50.

Acryptoinvest: Daily PoS chain transactions Polygon | Source: Polygonscan

A Polygon member reported that this activity could be attributed to a new type of token called “PRC-20”, a Polygon token standard inspired by Ordinals. Data shows that users were minting PRC-20 tokens under the name POLS en masse. These tokens are created using transaction call data on the Polygon blockchain instead of the usual ERC-20 token standard.

The mechanism was inspired by Ordinals, a protocol designed to generate tokens and NFTs on the Bitcoin network. It involves a process known as “writing” that assigns data to individual satoshis on the Bitcoin network. However, Polygon-based PRC-20s use a different strategy, using transaction call data to generate tokens or unique NFT-like image artifacts that are embedded in network transactions.

The developers previously launched the tokens on the Ethereum network in June using a similar Ordinals-based protocol called Facet.

All Acryptoinvest.news news in our Telegram channel @acryptoinvest_news