Increasing Popularity of Inscriptions on Multiple Blockchains
Avalanche (AVAX) users have paid a staggering $13.8 million in transaction fees over the past five days for minting and transferring tokens and non-fungible tokens (NFTs) created with inscriptions. This rise in fees can be attributed to the growing adoption of inscriptions on several blockchains, including Polygon and BNB Chain. Interestingly, users have paid around $1 million in fees for each of these blockchains. However, Avalanche has seen transaction fees soar, reaching a peak of $5.6 million per day. This amount accounts for approximately 70% of all fees spent on inscriptions across all blockchains tracked by the Dune Analytics dashboard developed by Hildobby, a pseudonymous researcher affiliated with VC firm Dragonfly.
Rising Non-Inscription Transactions and Increased Demand
During a five-day period in late November, transaction fees for inscriptions amounted to roughly $1.5 million. However, fees have surged significantly in recent times. This surge can be attributed to a notable increase in non-inscription transactions, leading to a higher overall demand for block space. In fact, transaction costs have been steadily climbing this month, with a notable spike that surpassed 5,000 nAVAX, the gas price per unit on the Avalanche blockchain, on December 18. Avalanche has processed a total of 61 million inscription-related transactions, ranking third behind BNB Chain (77 million transactions) and Polygon PoS (161 million transactions) in terms of transaction volume.
Inscriptions on the Rise with Growing Address Count
Over the past three days alone, approximately $3 million has been spent on inscriptions on the tracked blockchains, accounting for around 15% of the total fees paid. While the total number of inscriptions across all blockchains has stabilized, there has been a significant surge in the number of addresses being used to perform inscriptions. On high-volume days, roughly 50,000 addresses were involved in inscription-related transactions. However, this number skyrocketed to 180,000 addresses on a recent day.
This surge in inscriptions undoubtedly brings additional income for miners and validators, as long as they can manage the increased network activity efficiently.