This summary text is fully AI-generated and may therefore contain errors or be incomplete.
The Polygon network, a popular Ethereum sidechain, has experienced a significant surge in daily transactions. In just 24 hours, the number of transactions on the network skyrocketed from 2.89 million to an unprecedented 6.1 million, marking the highest daily transaction count since October of the previous year. This surge reflects a growing interest and engagement within the Polygon ecosystem.Alongside this surge in transaction volumes, there was a notable increase in gas fees on the Polygon network. Average transaction costs jumped from 100 Gwei to over 7,000 Gwei before settling at around 400 Gwei. Despite this spike, Polygon’s transaction costs remained significantly lower than those on the Ethereum mainnet, where fees for similar transactions can range between $30 to $50. The rise in transaction costs particularly affected token swaps on the blockchain, with costs reaching approximately $5 before moderating to under $0.50.The increase in transactional activity can be attributed to the introduction of a new token standard on Polygon called “PRC-20.” These tokens, inspired by the Ordinals protocol on Bitcoin, are created using transactional calldata, which is different from the conventional ERC-20 token standard. The minting of PRC-20 tokens, especially those named POLS, has contributed significantly to the increased transaction volumes. As the demand for block space intensified, users were willing to pay higher gas fees, leading to a competitive environment and higher transaction costs.Despite the recent surge, Polygon still offers a more cost-effective solution compared to the Ethereum mainnet. The current gas fees on Polygon are significantly lower than Ethereum’s rates. For example, a gas fee of 4,005 Gwei on Polygon equates to approximately $0.08, a fraction of Ethereum’s gas fee costs.However, the native token of Polygon, MATIC, has experienced a downturn in value. In the last 24 hours, its value has decreased by 1.95%, accompanied by a notable drop in the 24-hour trade volume. This decline reflects the market’s reaction to the recent network activity and gas fee fluctuations. These events highlight the dynamic nature of blockchain ecosystems.In conclusion, the Polygon network has witnessed a remarkable surge in daily transactions, accompanied by an increase in gas fees. The introduction of PRC-20 tokens has contributed to the transactional boom, leading to higher gas fees and increased transaction volumes. Despite the volatility, Polygon remains a cost-effective alternative to the Ethereum mainnet. However, the recent downturn in the value of the native token, MATIC, indicates the market’s response to the network’s activity and fee fluctuations.