Polygon Network Gas Fee Skyrockets Amid Heavy NFT Gaming, will MATIC Rally Continue?
Over the last week, Ethereum’s Layer 2 scaling solution, Polygon, has witnessed heavy on-chain activity. However, despite the high demand for the Polygon network, in recent times, the NFT play-to-earn game Sunflower Farmers have overstuffed this network.
This NFT game accounts for 40% of gas consumption, and its second consumes only 3% gas. As of the end of December 2021, the Sunflower Games resulted in the increase of the gas fee by a whopping 16x on the Polygon blockchain network. The increase has created issues for certain DApps. For example, the NFT rental protocol-Double Protocol in the early hours of today announced the postponement of its release of alpha Pass.
NFT game Sunflower Farmers remunerates gamers, thus imbibing in them the zeal of competitiveness to farm numerous token rewards. Gamers receive these rewards through smart contracts. Thus, players are constantly tasked with the responsibility of planting and harvesting crops to receive these awards. In addition, these earned tokens can be used to purchase in-game NFTs and pay for other benefits.
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Following this, players who aim for a larger share of SFF tokens are employing the high gas fee as leverage to ensure the acceptance of their transactions on Polygon. However, despite the surge, the Polygon gas fee remains cheap to Ethereum, wherein one transaction ranges between $50-$ 100.
Will MATIC Continue With Its Price Rally?
Polygon’s native crypto MATIC has performed excellently compared to the broader crypto market moving sideways. In the previous week, the MATIC price increased to its all-time high of $2.87. However, after this, it has moved sideways and hammered during the market crash which occurred today.
As of press time, Polygon (MATIC) is presently trading at its 50-day SMA average of $2.14. In the instance where MATIC reverses the trend, one could expect a quick 15% gain in the short term.