The recent surge in the "NFT craze" has become a hot topic in the crypto world. Some argue that EVM tags (Ethereum Virtual Machine) represent a revolutionary way for retailers to gain access to low-cap coins, while others consider this trend to be overly sensationalized. Regardless of your perspective, one thing is certain - this frenzy has started to clog up #blockchains .
Blockchain Bursts Under the Weight of NFTs
The #NFT craze, associated with various types of NFTs, from profile pictures to memecoins, has caused at least six blockchain networks to experience issues in the past week. Among these networks, problems have arisen in Arbirtrum, Avalanche, Cronos, zkSync, TON, and more recently, in Celestia. Researchers from the industry have posted screenshots of their block explorers, showing these outages.
Screenshot from Celestia block explorer. Source: X/@Dogetoshi
Massive mining activities in the Celestia network have also contributed to further complications. Arbitrum, for instance, confirmed that a sustained increase in NFTs had caused transaction delivery failures. Developer Cronos Ken Timsit attempted to address the situation by implementing a network update to account for fees on dynamic transactions.
What's Behind the NFT Gold Rush?
Essentially, the #NFT gold rush allows users to write data directly into EVM-based blockchains. As explained by developer Shardul Mahadik, EVM tags are akin to writing on a banknote with the lowest denomination. Users conduct a transaction and record data in the notes field within a payment application.
Most of these NFTs involve themed tokens, such as Bitcoin frogs or new tokens like BMBI, BEEG, and GROK. These operations have gained popularity due to their relatively low minting costs compared to transactions conducted through smart contracts.
Bitcoin developer Eric Wall proposed that EVM tags could be a way for retailers to gain access to low-cap cryptocurrencies. ICOs have been regulated and restricted, leading many projects to limit token sales to accredited investors.
At the same time, there is an opinion that EVM tags could serve as a new method of retail distribution, although some skeptics argue that it lacks rational logic.
Warnings and Current Trends
EVM tag transactions have seen a steep rise, with over $6 million spent on gas fees associated with these transactions on December 18. Polygon founder Sandeep Nailwal noted that many users are migrating to Polygon due to advantageous gas fees.
According to Dune Analytics, gas fees for NFTs surpassed $6 million on December 18th, with a record $8.3 million spent on them on December 16th.
Amount of gas spent on inscriptions across various chains. Source: Dune Analytics
However, some caution that this trend is attracting crypto influencers who promote "shitcoins," and they warn that trading remains risky despite the market's growth.
The NFT gold rush may be the latest phenomenon in the crypto world, but it also brings up questions and discussions about its long-term sustainability and its impact on blockchain networks and cryptocurrency markets.
Do you want to receive this information every day? Give us a like❤️ and start following us🔔
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
