The prevailing bullish sentiment in 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.
Data from BeInCrypto exhibits that OKT’s price went from $14.7 to a 9-month excessive of $30. However, its worth has retraced to $25 as of press time.
Why Did OKT’s Price Skyrocket?
The outstanding surge in OKT’s value 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 information of a blockchain transaction. These inscriptions are much like Bitcoin Ordinals as they basically create non-fungible tokens (NFTs) based mostly on sensible contracts.
On-chain data exhibits 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.
However, 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 because of the heightened visitors from OKT Chain.
Besides that, the community’s common transaction fee spiked to 0.00074 OKT throughout the peak of those transactions.
Read extra: 7 Must-Have Cryptocurrencies for Your Portfolio Before the Next Bull Run
OKT Chain is an Ethereum Virtual Machine (EVM) and Inter-Blockchain Communication Protocol (IBC) Layer-1 community constructed on Cosmos and backed by crypto change OKX.
Inscriptions Adoption Grows
Meanwhile, 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 whole transactions on Polygon, Avalanche, and BNB Chain final week.
However, they’ve attracted criticism from a number of group members who level out the community congestion and the rising transaction charges they trigger.
Read extra: Top 10 Cryptocurrencies to Invest in December 2023
Venture capital agency Dragonfly showed that gas fees for inscription transactions peaked at greater than $800,000 two weeks in the past. However, the transactions have steadily attracted charges of greater than $500,000.
“Inscriptions can skew basic metrics like transaction count… Inscriptions go against every EVM design decisions, with gas costs being the only benefit, at the expense of indexing, non-compatibility, integration challenges,” Hildobby said.
Disclaimer
In adherence to the Trust Project tips, BeInCrypto is dedicated to unbiased, clear reporting. This information article goals to supply correct, well timed info. However, 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.
