Avalanche Users Spend $13.8 Million in Transaction Fees on Inscriptions in 5 Days
In the last five days, users on the Avalanche blockchain have collectively paid $13.8 million in transaction fees for the creation and movement of tokens and NFTs using inscription-based technology. These unique tokens are generated by incorporating text into standard blockchain transactions, utilizing an off-chain numbering system for tracking. The popularity of inscriptions has surged beyond Bitcoin, originally adopted due to its absence of native token support, finding traction on various blockchains for their cost-effectiveness compared to native tokens.
Avalanche transaction fees soar to $5.6 million daily
While other blockchains have witnessed the creation of millions of inscription-based tokens, Avalanche stands out as users have contributed around a million dollars in fees for each chain in total. Notably, the blockchain’s transaction fees for inscriptions peaked at an impressive $5.6 million per day in recent times, constituting approximately 70% of all fees across all blockchains monitored by the Dune Analytics dashboard.
Avalanche has experienced two distinct phases of heightened interest in inscriptions. The initial surge, lasting five days in late November, accrued transaction fees amounting to about $1.5 million. However, the recent period has seen substantially higher fees, attributed to a surge in non-inscription transactions, indicating an overall increased demand for block space. Transaction costs have steadily risen throughout the month, reaching a notable peak on December 18, surpassing 5,000 nAVAX, the gas price per unit on the blockchain.
Avalanche ranks third in inscription-related transactions, processing a total of 61 million, trailing behind BNB Chain with 77 million and Polygon PoS with 161 million transactions. The Dune Analytics dashboard reports over 1,160 inscription collections hosted by the blockchain, showcasing the platform’s growing prominence in this domain. The number of addresses actively participating in inscription-related activities has witnessed a rapid surge, underscoring the expanding user base.
Conclusion: Miners benefit amid increased network activity
Despite the reasons behind the sudden surge in inscription usage, miners and validators are likely to welcome the additional income, given their capacity to manage heightened network activity. However, it’s crucial to note that, unlike their counterparts, Avalanche validators do not receive transaction fees, as these fees are systematically burned.
In summary, Avalanche’s recent prominence in inscription-based transactions underscores the blockchain’s growing significance in the token creation and movement landscape. The increased transaction fees reflect both user engagement and the platform’s ability to handle the rising demand for inscription-related activities.