The prevailing bullish sentiment within the crypto market is considerably impacting practically all digital belongings. 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.
Information from BeInCrypto reveals that OKT’s worth went from $14.7 to a 9-month excessive of $30. Nevertheless, its worth has retraced to $25 as of press time.
Why Did OKT’s Worth 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 throughout the name knowledge 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% throughout the previous week to as excessive as 7.2 million on December 8.
Nevertheless, 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 pockets additionally suffered an outage as a result of heightened visitors from OKT Chain.
Apart from that, the community’s common transaction price spiked to 0.00074 OKT throughout the peak of those transactions.
Learn extra: 7 Should-Have Cryptocurrencies for Your Portfolio Earlier than the Subsequent 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 alternate OKX.
Inscriptions Adoption Grows
In the meantime, inscriptions are additionally driving transactions on a number of EVM-compatible blockchains, together with TON, Close to Protocol, and Polygon, to unprecedented highs. For context, inscriptions accounted for over 50% of whole transactions on Polygon, Avalanche, and BNB Chain final week.
Nevertheless, they’ve attracted criticism from a number of neighborhood members who level out the community congestion and the rising transaction charges they trigger.
Learn extra: Prime 10 Cryptocurrencies to Put money into December 2023
Enterprise capital agency Dragonfly showed that fuel charges for inscription transactions peaked at greater than $800,000 two weeks in the past. Nevertheless, the transactions have steadily attracted charges of greater than $500,000.
“Inscriptions can skew primary metrics like transaction depend… 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.
In adherence to the Belief Venture tips, BeInCrypto is dedicated to unbiased, clear reporting. This information article goals to supply correct, well timed data. Nevertheless, readers are suggested to confirm information independently and seek the advice of with an expert earlier than making any selections based mostly on this content material.