Polygon (MATIC) Witnessed Surge in Transactions and Gas Fees Due to PRC-20 Token Standard
In the past 48 hours, Polygon (MATIC) has experienced a remarkable surge in transaction fees and volume, reaching unprecedented levels, all thanks to the introduction of the PRC-20 token standard, bearing striking resemblances to Ordinals’ BRC-20 protocol on Bitcoin.
According to data sourced from Polygonscan, daily transaction volumes on Polygon surged from a range of 2 to 2.5 million transactions per day over recent weeks to a staggering 6.1 million transactions on November 15th. Subsequently, it soared to an all-time high of 16.4 million transactions on November 16th, surpassing the previous peak of 9 million transactions recorded back in July 2021. Meanwhile, the average gas fee on Polygon on November 16th at times spiked to 7,000 gwei, significantly surpassing the typical range of 200-300 gwei. Consequently, token swap fees on this blockchain momentarily hit $5 before retracting to around $0.5.
The surge in Polygon’s activity stems from the introduction of PRC-20, a new token standard similar to Bitcoin Ordinals’ BRC-20. Numerous users have engaged in minting PRC-20 tokens, with the most prominent being POLS, a coin bearing a name close to the new token that is set to replace MATIC.
PRC-20 operates with an “inscription” mechanism akin to BRC-20, utilizing calldata from each transaction to embed images or data into individual blocks on the blockchain, transforming them into unique and irreplicable NFTs.
The development team behind PRC-20 remains largely unknown, yet a majority of discussions and posts regarding this new token standard on social media platforms like Twitter largely originate from the Chinese crypto community. Meanwhile, Polygon has been diligently preparing for the implementation of Polygon 2.0, which involves replacing the MATIC token with POL, unveiling the “3 Pillars” governance model, deploying re-staking mechanisms, upgrading the Polygon PoS chain to layer-2 zkEVM, among other advancements.
Moreover, the recent project also announced a $90 million ecosystem development fund and collaborations with various entities such as OKX to build a layer-2 solution for their platform. Additionally, they’re developing zkWASM solutions for the NEAR Protocol and aiding the Web3 social network Lens Protocol in deploying their V2 upgrade.
— 0xmr.33🟧🦇🟦 (@0xmr33) November 16, 2023
The surge in Polygon’s activity and the introduction of the PRC-20 token standard signify a significant milestone, underscoring the platform’s adaptability and its pivotal role in fostering innovative blockchain advancements. As the crypto landscape continues to evolve, Polygon’s endeavors pave the way for a more robust and diverse decentralized ecosystem.
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