Is Inscriptions behind Avalanche’s rising network?
- Avalanche generated the third-highest fee revenue in the last 24 hours.
- EVM inscriptions caused a spike in fees.
Avalanche [AVAX] recorded more than $7 million in transaction fees in the last 24 hours, AMBCrypto discovered using Token Terminal’s data.
With this, it became the project with the third-highest fee revenue, trailing only Bitcoin [BTC] and Ethereum [ETH].
The latest surge propelled Avalanche’s weekly earnings to $13.5 million, putting it sixth on the list of top projects in terms of daily fees.
Inscriptions power Avalanche’s network activity
According to a Dune dashboard scanned by AMBCrypto, EVM inscriptions, similar in concept to Bitcoin Ordinals, caused the spike in fees.
More than 77% of the gas fees in the last 24 hours were spent on minting inscriptions. More than 87% of all transactions generated on the Avalanche C-Chain were tied to inscription activity.
Drawing inspiration from Bitcoin’s BRC-20s, EVM chains started creating their token standard to inscribe information, like non-fungible tokens (NFTs), on the blockchain. Avalanche too hopped on the bandwagon, launching its ASC-20 standard.
The craze was quick to catch up, as Avalanche witnessed never-seen-before highs in transaction numbers over the last month.
The daily count exploded to 7.13 million on the 16th of December, AMBCrypto discovered using Avalanche Explorer data. Before this, transactions above 7 million were recorded on the 22nd of November.
This is for a blockchain that averaged 950,000 transactions on average in the four months preceding the Inscriptions hype.
Apart from transactions, the number of active users of the chain also saw an uptick. Addresses interacting with the network spiked to highs not seen in the last five months.
How much are 1,10,100 AVAXs worth today?
High fees applying upward pressure on AVAX?
Currently, Avalanche burns all the revenue it generates from transaction fees. This meant that the higher the fees, the higher will be the deflationary pressure on AVAX.
As per Avascan, more than 650,000 AVAX tokens were driven out of circulation in the last 30 days. The deficit could also potentially explain the price pump of the asset, to the tune of 86%, in the same period, as per CoinMarketCap.