The newly launched layer-2 solution Immutable X has saved NFT traders on the Ethereum blockchain more than $414,480 in gas fees in the first 24 hours since its launch. Immutable announced this remarkable statistic on Twitter this Friday. Their newly launched marketplace currently only supports Gods Unchained, but more products will follow in the coming months.
The average price for an Ethereum transaction has increased almost 1000% in the past year. That’s why many projects abandon the Ethereum mainnet and move to sidechains, while Immutable X has become the latest solution to high gas fees.
Immutable X uses the zk-rollups technology by Starkware. This allows the scaling solution to still connect to the Ethereum network, without the need to send all NFT transactions over the mainnet. It basically creates a highway around the city center of the Ethereum blockchain, making processing traffic much cheaper and efficient.
In the first 24 hrs of trading, Immutable X has saved the @GodsUnchained community $414,480+ USD of gas fees pic.twitter.com/UHT3FalC7o
— Immutable (@Immutable) April 9, 2021
The current market for NFTs
Minting or transferring a digital asset, also known as an NFT or non-fungible token, can cost tens of dollars. The increased activity on the Ethereum blockchain, and its limited capacity, made usage costs skyrocket. Users need to pay in order to have their actions processed, and the network picks the ones that pay the most.
Immutable X puts focus on NFTs, and therefore fits well with gaming. Currently only trading cards from the card game Gods Unchained are available on Immutable X. In the coming months they will add more features, more partners will join and ultimately anybody can mint NFTs for free on the platform. Because the layer-2 solution is still connected to the Ethereum network, payments still happen in ETH.
NFTs are extremely hot right now. Celebrities are jumping in, while collectors and investors spend millions on the hottest collectibles. In gaming alone there’s $1.1 million in transaction volume per day. Furthermore the entire dapp industry was good for $1.5 billion dollars in Q1 2021. That’s an increase of 639% in one year. Sure, this number also includes DeFi, but even the leading DeFi product is embracing NFTs to advance their technology and offer a more interesting product.
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