With a daily increase of over 160%, is OKT a flash in the pan or a new life?

On December 10, the news that OKT Chain launched its first inscription minting activity brought the L1 chain, which had been declining for two and a half years, back to life. The chain's native token OKT rose by nearly 160% in one day. The inscription OKTS also became the object of competition in the community, which once caused the OKX Web3 wallet asset display to freeze, and there were more than 170,000 unconfirmed transactions on the chain.

The continued popularity of Bitcoin ecology has led major public chains to follow suit and develop "X" RC-20 gameplay, among which inscriptions are the first. As a public chain launched by the leading exchange OKX, while already trying its best to create an atmosphere for the inscription market, it also personally participated in the market, which inevitably makes people have expectations for its first inscription like ORDI.

Inscription casting becomes a coin price booster

According to OKX market data, on December 10, OKT, the native token of OKT Chain supported by OKX, rose by more than 160% throughout the day. The main reason for the sharp rise in the currency was the launch of the first inscription casting activity on OKT Chain.

From the OKT price chart, we can see that on December 10, the OKT price was about $15, but in just one day, the price soared to a peak of $38.88, an increase of 160%. For the L1 public chain, which has been falling since May 2021, this is a small surprise for investors.

However, even though OKT has risen sharply due to the news, the price range is only equivalent to its price in February this year, and the increase is not much better than other mainstream public chains under the recent bullish trend of the crypto market. In addition, the OKX exchange's OKT trading page also reminds that the token price fluctuates greatly and investors need to pay attention to risks.

Recently, driven by the hot market of Bitcoin ecology, major public chains have launched inscription casting tools. OKX, which has already laid out the inscription market at the beginning of this year, has naturally reaped a lot of rewards in the second half of the year, but the speed of launching its own chain inscriptions is obviously slower than other public chains. Therefore, the first inscription OKTS casting event on the OKTC chain has attracted the attention of many inscription enthusiasts and investors.

The OKTs burned this time is the first inscription on the OKTC chain. The total amount is 210 billion, 1,000 per piece. Users can cast in a variety of ways, the most common of which is to choose the inscription tool on the OKT platform. After confirming the OKTC network, enter the text "{"p":"xrc-20","op":"mint","tick":"okts","amt":"1000"}".

Currently, the gas fee for minting OKTs is extremely low, which has led to a large influx of users, causing congestion in OKTC and problems with OKX Web3 wallets. According to OKLink data, there were more than 170,000 unconfirmed transactions on the OKT Chain on December 10. And OKX Chinese tweeted that due to frequent inscription activities on the OKTC chain, the asset display and transaction services of the OKX Web3 wallet had problems, but they soon returned to normal.

The forgotten and decaying L1 chain

Since its birth, OKT Chain has only risen by barely more than 6 times in the super bull market in 2021. Since then, it has been falling all the way and has never recovered. For this reason, some netizens jokingly called it "Dead Chain".

OKT Chain is an L1 public chain developed based on Cosmos and compatible with EVM and Wasm. It is officially described as focusing on interoperability and improving performance. With the support of its high scalability, developers can build and expand with lower gas fees.

According to data on the OKT Chain official website, the total number of transactions on the chain has reached 220 million, the total amount of OKT pledged has reached 4.68 million, the number of active addresses is 107 million, and the total market value has exceeded US$544 million.

Currently, OKT Chain's TVL is about 73.2 million US dollars, but combined with its historical trend chart, it has fallen since it rose rapidly to a high of around 2.2 billion US dollars in August 2021. In addition, in the past month, especially since November 20, the TVL of its DeFi project has been nearly halved. It can be seen that the development of the public chain's ecological projects is not satisfactory, which may be one of the reasons why its project team decided to start inscription casting.

However, OKX has already made multiple arrangements in the development and construction of public chains. In March of this year, OKX's CEO Star Xu responded to user questions on social media and said that the OKT chain will always be the L1 chain, while the OKB Chain will be Ethereum's L2 chain. It will start with side chain technology and develop towards ZK technology.

In addition, this year OKX also launched the zKEVM Layer2 network X1 with Polygon, and has launched the test network. Star Xu revealed that 50 projects have been deployed on the X1 test network in the first week of the launch, and the team is launching more projects.

It can be seen from this that OKT Chain is no longer the focus of OKX's layout, and in the future it will serve more as a puzzle piece of the entire ecosystem of the exchange platform.

This can also be confirmed from the rare actions of the project party this year. In the second half of the year, there were few media reports on OKT Chain. In the first half of the year, OKTC sponsored the Consensus2023 conference hackathon, integrated WebAssembly (Wasm) technology, and released the OKT production reduction plan. Apart from that, there were no major actions.

However, with the huge traffic and hot money brought by the inscription craze, the first inscription on OKTC based on OKX may not be unpopular in the market. And this year, there have been cases where the rise of the public chain’s native token has driven the activation of the entire chain ecosystem, such as Solana, Avalanche, OP, etc. Therefore, it is worth paying attention to the chain ecosystem projects related to OKB Chain.

On-chain projects

Boy X Highspeed (BXH):

The project is a decentralized exchange deployed on OKXChain. All transactions are conducted on the chain, supporting decentralized digital currency transactions, liquidity mining, platform coin pledge dividends, and other gameplay. The platform token BXH is all generated by liquidity mining and can be widely used in BXH trading scenarios. It is also the voting certificate for the platform DAO community governance.

CherrySwap:

CherrySwap is based on the OKT Chain automatic market making protocol and adopts the automatic market maker mechanism (AMM). It aims to achieve self-driven liquidity creation with diversified functions such as liquidity mining, IFO, NFT, DAO, etc., and give participants the greatest value dividend.

WePiggy:

WePiggy is an open-source, non-custodial crypto asset lending market protocol. Users can deposit specific crypto assets to earn interest, or pay a certain interest to borrow a certain crypto asset. WPC is the governance token of the WePiggy protocol, with a total of about 8 million, which is completely generated through mining, without VC allocation, private placement, or pre-mining. Liquidity mining is now online, supporting aToken and cToken of mainstream assets such as BTC and YFII mining.

Lendhub:

LendHub is a decentralized and secure lending platform for BSC and Heco chains, which already supports more than 20 types of asset lending and liquidity LHB. Users can get incentive tokens LHB rewards by lending on LendHub. LHB will serve as the hub of the LendHub platform, supporting pledge lending of multi-chain assets to achieve mutual integration and value transfer among multiple public chain assets.

SupremeX:

SupremeX is the first decentralized financial lending platform built on OKT Chain through smart contracts. SupremeX introduces a simple and easy-to-use crypto asset lending solution to the decentralized finance (DeFi) ecosystem, allowing users to borrow directly in mainstream tokens at high speeds while requiring only a small fee. In addition, the protocol allows users to obtain SXC tokens during the lending process for the governance of the SXC community.

FarmHero:

FarmHero is a new GameFi protocol based on OKTC, Polygon and BSC networks. The platform combines NFT, games and DeFi to create various game earning mechanisms.

summary

The current inscription market is highly hyped by capital, and high-profile inscriptions with strong consensus are more likely to double in value. As the first inscription on the OKTC chain, OKTS, backed by OKX, is also more anticipated by investors. As for the OKTC chain and its native token OKT, it is still difficult to see its future growth potential in the short term. Therefore, it all comes down to the degree of resource inclination of the OKX platform.