Avalanche Witnesses Surge in Transactions as New Crypto Collectibles Take Center Stage
Avalanche, the blockchain network, is experiencing a surge in daily on-chain transactions, with over 95% attributed to a novel form of crypto collectibles called ASC-20 tokens. The Avalanche C-Chain, responsible for smart contracts, reached a record-breaking 2.3 million transactions per day on November 19, compared to an average of 450 thousand per day.
ASC-20 Tokens: The New Wave
Similar to Bitcoin Ordinals, ASC-20 tokens employ inscription to embed information on the blockchain. Jacob Everly, a technical product manager at Ava Lab, explained that ASC-20s transcribe information within the Call-Data of a transaction, offering cost-effective on-chain storage compared to the ERC-20 standard on Ethereum.
Impact on Avalanche Network
The surge in ASC-20s resulted in the Avalanche Primary Network, comprising over 1500 consensus-participating validators, averaging 40-plus transactions per second and occasionally reaching 100 per second. Despite the increased transaction volume, the block time-to-finality remained around one second, and the average gas price stood at 80 nAVAX, costing approximately $0.05 per ASC-20 transaction.
Transaction Details and Market Dynamics
While over 6.8 million transactions have interacted with ASC-20 tokens, it seems too early for active trading, with no specialized marketplaces identified yet. The number of individual users behind the transactions remains unclear. Despite the transaction surge, daily average transaction fees and unique active addresses on the Avalanche network have not experienced significant changes.
Broader Trend in Blockchain Activity
Avalanche is not the only network witnessing increased activity due to inscription minting. Similar trends have been observed on Polygon's PoS chain, Litecoin, and Dogecoin earlier this year, indicating a broader shift in blockchain activity and the emergence of new forms of crypto collectibles.