The prevailing bullish sentiment within the crypto market is considerably impacting almost all digital property. Lesser-known cryptocurrencies like OKT, the native token for the layer-1 blockchain community OKT Chain (OKTC), surged by 80% over the previous 24 hours.
Knowledge from BeInCrypto reveals that OKT’s price went from $14.7 to a 9-month excessive of $30. Nonetheless, its worth has retraced to $25 as of press time.
Why Did OKT’s Value Skyrocket?
The exceptional surge in OKT’s worth will be attributed to heightened curiosity from the inaugural inscription-minting occasion hosted on the OKT Chain.
Inscriptions on layer-1 blockchain networks like OKT Chain function by storing metadata inside the name information of a blockchain transaction. These inscriptions are just like Bitcoin Ordinals as they primarily create non-fungible tokens (NFTs) based mostly on good contracts.
On-chain data reveals that transactions on the OKT Chain soared by greater than 18,000% through the previous week to as excessive as 7.2 million on December 8.
Nonetheless, the elevated community exercise additionally resulted in vital community congestion for the little-known blockchain community. There are round 100,000 pending transactions as of press time. The OKX Web3 wallet additionally suffered an outage as a result of heightened site visitors from OKT Chain.
In addition to that, the community’s common transaction fee spiked to 0.00074 OKT through the top of those transactions.
Learn extra: 7 Must-Have Cryptocurrencies for Your Portfolio Before the Next Bull Run
OKT Chain is an Ethereum Digital Machine (EVM) and Inter-Blockchain Communication Protocol (IBC) Layer-1 community constructed on Cosmos and backed by crypto change OKX.
Inscriptions Adoption Grows
In the meantime, inscriptions are additionally driving transactions on a number of EVM-compatible blockchains, together with TON, Near Protocol, and Polygon, to unprecedented highs. For context, inscriptions accounted for over 50% of complete transactions on Polygon, Avalanche, and BNB Chain final week.
Nonetheless, they’ve attracted criticism from a number of group members who level out the community congestion and the growing transaction charges they trigger.
Learn extra: Top 10 Cryptocurrencies to Invest in December 2023
Enterprise capital agency Dragonfly showed that gas fees for inscription transactions peaked at greater than $800,000 two weeks in the past. Nonetheless, the transactions have steadily attracted charges of greater than $500,000.
“Inscriptions can skew fundamental metrics like transaction rely… Inscriptions go towards each EVM design selections, with fuel prices being the one profit, on the expense of indexing, non-compatibility, integration challenges,” Hildobby said.
Disclaimer
In adherence to the Belief Mission tips, BeInCrypto is dedicated to unbiased, clear reporting. This information article goals to offer correct, well timed info. Nonetheless, readers are suggested to confirm info independently and seek the advice of with an expert earlier than making any selections based mostly on this content material.