LianGuai Observation|Intraday rise of more than 160%, is OKT a flash in the pan or a new beginning?

Decoding LianGuai's Surge Is the 160% Intraday Rise an Illusion or a Promising Start?

Author: Socra, LianGuai

On December 10th, the news that OKT Chain has launched its first inscription forging event brought new life to this L1 chain, which has been in decline for two and a half years. The native token of the chain, OKT, rose by nearly 160% in one day. Inscribed okts have also become the object of community competition, causing the OKX Web3 wallet to experience lag in asset display and over 170,000 unconfirmed transactions on the chain.

The continuous popularity of the Bitcoin ecosystem has prompted major public chains to open up “X” RC-20 gameplay, with inscriptions leading the way. As the flagship exchange, OKX has personally rolled up its sleeves in creating an atmosphere for the inscription market, fueling high expectations for its first inscription.

Inscription forging as a price booster

• Garbage Shanzhai’ Investment Guide Profit from Trends and Aim for Big Win
• Unveiling the Mystery behind Bitcoin’s ‘Flash Crash’ Why it Happened and What it Means for the Future
• From Faucets to Bitcoins How Cryptocurrency is Making a Splash in Water-Scarce Nations

According to OKX market data, on December 10th, the native token OKT of OKX Chain, which is backed by OKX, rose by over 160% throughout the day. The main reason for the substantial increase in the coin’s value is the launch of the first inscription forging event on OKT Chain.

From the OKT price trend chart, it can be seen that on December 10th, the OKT price was around $15, but within a day, the price soared to a peak of $38.88, an increase of 160%. For this L1 public chain, which has been declining since May 2021, it’s considered a small surprise for investors.

However, even though OKT experienced a substantial increase due to the news, its price range is only equivalent to its price in February this year, and its advantage in terms of growth compared to other mainstream public chains is not significant in the recent bullish trend of the crypto market. In addition, the OKX exchange’s OKT trading page also reminds investors of the high price volatility of the token and the need to pay attention to the risks.

With the recent boom in the Bitcoin ecosystem, major public chains have launched inscription forging tools one after another. OKX, which has already laid out the inscription market earlier this year, has naturally reaped rewards in the second half of the year. However, compared to other public chains, its speed in launching its own chain inscription is noticeably slower. Therefore, the first inscription forging event on the OKTChain, which has been opened this time, has attracted the attention of many inscription enthusiasts and investors.

The inscribed okts in this event are the first inscription with a total quantity of 210 billion on the OKTC chain, with 1000 per piece. Users can forge them through various channels, the most common of which is selecting the inscription tool on the OKT platform. After selecting the OKTC network, simply input the text “{‘p’:’xrc-20′, ‘op’:’mint’, ‘tick’:’okts’, ‘amt’:’1000′}”.

Currently, the Gas fees for minting OKTs are extremely low, which has led to a large influx of users, causing congestion on OKTC and issues with the OKX Web3 wallet. According to OKLink data, there are over 170,000 unconfirmed transactions on the OKT Chain as of December 10th. Additionally, OKX’s Chinese Twitter account stated that due to frequent contract activities on OKTC, there have been issues with asset display and transaction services on the OKX Web3 wallet, although they were quickly resolved.

The Forgotten and Declining L1 Chain

Since its inception, the OKT Chain has only seen a marginal increase of just over 6 times during the 2021 bull market, and has been on a downward trend ever since, earning it the nickname “Dead Chain” from internet users.

The OKT Chain is an L1 public chain based on Cosmos that is also compatible with EVM and Wasm. It is described as focusing on interoperability and performance improvement. With its high scalability, developers can build and expand with lower gas fees.

According to data from the official OKT Chain website, there have been a total of 220 million transactions on the chain, with a total staked amount of 4.68 million OKT tokens. The number of active addresses is 107 million, and the total market value has exceeded $544 million.

Currently, the Total Value Locked (TVL) on the OKT Chain is about $73.2 million. However, looking at its historical trend, it rapidly rose to a peak of around $2.2 billion in August 2021 and has been declining since then. Especially in the past month, starting from November 20th, the TVL of its DeFi projects has almost halved. This indicates that the development of the ecosystem projects on this public chain has not been as satisfactory, which may be one of the reasons why the project team decided to start contract minting.

However, OKX has made multiple layouts in the development and construction of public chains. In March of this year, Star Xu, the CEO of OKX, responded to user inquiries on social media, stating that the OKT Chain will always be an L1 chain, while the OKB Chain will be an Ethereum L2 chain, starting with sidechain technology and developing towards ZK technology.

In addition, OKX has also launched the zKEVM Layer2 network X1 in collaboration with Polygon this year, which is already live on the testnet. Star Xu revealed that in the first week of launch, 50 projects have already deployed on the X1 testnet, and the team is initiating more projects.

From this, it can be seen that the OKT Chain is no longer the focus of OKX’s layout and will play a role as a puzzle piece in the overall ecosystem of the exchange platform.

This is evidenced by the lack of notable actions by the project team in recent months. There have been few reported news or developments related to the OKT Chain in the second half of the year. In the first half of the year, OKTC sponsored the Consensus2023 hackathon, integrated WebAssembly (Wasm) technology, and announced the OKT reduction plan, but there have been no significant actions since then.

However, with the huge influx of traffic and hot money brought by the engraving trend, the first engraving on OKX’s OKTC may not be popular in the market. There have already been cases this year where the rise of native tokens on public chains has driven the overall on-chain ecosystem, such as Solana, Avalanche, and OP. So it wouldn’t hurt to pay attention to the on-chain ecosystem projects related to OKB Chain.

On-chain Projects

Boy X Highspeed (BXH):

This project is a decentralized exchange deployed on OKXChain, where all transactions take place on the chain. It supports decentralized digital currency trading, liquidity mining, platform token staking dividends, and other gameplay options. The platform’s token BXH is generated entirely through liquidity mining and can be widely used in the BXH trading scene. It also serves as a voting certificate for platform DAO community governance.

CherrySwap:

CherrySwap is an automatic market-making protocol based on OKT Chain. It adopts an automated market maker mechanism (AMM) and aims to achieve self-driven liquidity creation through diversified functions such as liquidity mining, IFO, NFT, and DAO, giving participants maximum value dividends.

WePiggy:

WePiggy is an open-source, non-custodial market protocol for encrypted asset lending. Users can deposit specific encrypted assets to earn interest or pay interest to borrow certain encrypted assets. WPC is the governance token of the WePiggy protocol, with a total supply of approximately 8 million, entirely generated through mining without VC allocation, private placement, or pre-mining. Liquidity mining has already been launched, supporting the mining of aTokens, cTokens for mainstream assets like BTC, and YFII.

Lendhub:

LendHub is a decentralized secure lending platform on BSC and Heco networks that supports over twenty assets for lending and liquidity LHB. By borrowing and lending on LendHub, users can earn incentive tokens LHB. LHB will serve as the hub for the LendHub platform, realizing the interpenetration and value transfer of multiple assets across public chains through collateral lending.

SupremeX:

SupremeX is the first decentralized financial lending platform built on OKT Chain through smart contracts. SupremeX introduces a user-friendly encrypted asset lending solution to the decentralized financial (DeFi) ecosystem, allowing users to borrow from mainstream tokens at high speed with minimal fees. Additionally, the protocol allows users to obtain SXC tokens during the lending process for governance within the SXC community.

FarmHero:

FarmHero is a new GameFi protocol based on OKTC, Polygon, and BSC networks. The platform combines NFTs, gaming, and DeFi to create various mechanisms for earning rewards in games.

Summary

The current engraving market is heavily speculative, and engravings with strong consensus are more likely to increase in value. As the first engraving on OKTC, backed by OKX, okts is also highly anticipated by investors. As for OKTC and its native token OKT, it is still difficult to see their future growth potential in the short term. Therefore, ultimately, it depends on the extent to which the OKX platform tilts its resources.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!