The general bullish sentiment in the cryptocurrency market is having a significant impact on almost all digital assets. Lesser-known cryptocurrencies such as OKT, the native token of the first-layer blockchain network OKT Chain (OKTC), have risen by 80% in the past 24 hours.
Data from Coinmarketcap shows that OKT price has risen from $14.70 to a nine-month high of $30. However, at the time of writing, its value has fallen to $25.
Why did the OKT price surge?
The sharp rise in OKT’s price can be attributed to the increased interest generated by the first-ever inscription minting event held on the OKT chain.
Inscriptions on first-layer blockchain networks such as OKT Chain work by storing metadata in the call data of blockchain transactions. These inscriptions are similar to Bitcoin ordinals in that they are essentially smart contract-based creation of non-fungible tokens (NFTs).
On-chain data shows that on December 8, the transaction volume on the OKT chain increased by more than 18,000% in the past week to 7.2 million transactions.
However, the increase in network activity has also led to severe network congestion on the lesser-known blockchain network. At press time, there are approximately 100,000 pending transactions. The OKX Web3 wallet has also experienced outages due to the increased traffic on the OKT chain.
Additionally, during peak trading periods, the network’s average transaction fee soared to 0.00074 OKT.
OKT Chain is compatible with the Ethereum Virtual Machine (EVM) and the layer-one Inter-Blockchain Communication Protocol (IBC) network built on Cosmos and supported by cryptocurrency exchange OKX.
Acceptance is growing
At the same time, Inscription has also driven transactions on multiple EVM-compatible blockchains, including TON, Near Protocol, and Polygon, to all-time highs. For context, Inscription transactions accounted for more than 50% of all transactions on Polygon Chain, Avalanche, and BNB last week.
However, they have faced criticism from some community members who have pointed out the network congestion and increased transaction fees they have caused.
According to Dragonfly, a venture capital firm, gas fees for inscription transactions peaked at more than $800,000 two weeks ago. However, transactions often attract fees of more than $500,000.
Hilldoby said:
Inscriptions can distort basic metrics like transaction counts… Inscriptions go against every EVM design decision, gas cost is the only benefit, leads to indexing challenges, incompatibilities like integrations.
【Disclaimer】The market is risky, so be cautious when investing. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions in this article are suitable for their specific circumstances. Investing based on this information is at your own risk.
