Will PING once again trigger a "inscription craze" with a single-day rise of over 8 times?

Original title: Single day rise of over 8 times, will PING once again spark the “inscription craze”?

Original author: Haotian

Original source:

Reprint: Mars Finance

Editor’s Note: In the past couple of days, the biggest golden dog might be $PING on Base. It is the first token issued through the x402 protocol. x402 is an open payment protocol developed by Coinbase that enables AI agents to autonomously complete transactions. Its minting process is reminiscent of inscriptions from two years ago. For more information on PING and the x402 protocol, please refer to: “The 30 Times Bigger Golden Dog Like Inscription, What is the x402 Protocol?”.

Currently, the market capitalization of PING has exceeded 30 million USD, and it has risen more than 8 times in 24 hours, which has also sparked people's expectations for a second “inscription boom.” Crypto researcher Haotian has also provided his analysis on this boom, and the following is the original content: Everyone says that the emergence of $PING is very similar to the BTC inscription boom of 2023, but why is it similar? In what ways is it similar? Will it evolve and develop like the inscription market? First, the answer: Yes. Alright, here is the specific logic explained:

1. Why is that? The core lies in on-chain legitimate data + off-chain interpretation rights.

The operational logic of inscriptions is as follows: users send transactions to the BTC mainnet and hold specific UTXOs, but the BTC mainnet does not have the ability to determine which transactions are valid. The Ordinals protocol is the indexer that judges the validity of inscriptions. Acting as a third-party arbiter, it scans all transactions on the chain and determines which are valid true inscriptions according to its own defined rules, such as “First is First.”

The operational logic of PING is almost the same formula: users send USDC to a specific address on the Base chain, which is dynamically returned by x402scan. This is equivalent to the user issuing a “payment request” to the x402 protocol, but neither the Base chain nor the x402 protocol itself knows that this is “minting $PING”; in their eyes, this is just a regular ERC20 transfer.

What truly gives this transaction its “mint meaning” is the indexer x402scan: it scans all USDC transfers to specific addresses on the Base chain, determining which transactions are “valid mints” according to its own defined rules (1 USDC = 5000 $PING), then records them in an off-chain database and distributes tokens via contracts.

2. Where is it like

When inscriptions first came out, they faced resistance from the Bitcoin Core team because their existence only cluttered the BTC mainnet with a large number of dust transactions, without any value. Clearly, following this line of thought, the existence logic of $PING is also similar, but like the BTC mainnet, the x402 protocol, as an open standard, is powerless even if it is not appealing in the short term.

The principle is very simple. The assets that everyone inscribes still exist on the BTC mainnet. Once the inscriptions lose their speculative value, releasing them can still return a portion of BTC. However, the PING that everyone mints actually goes into the treasury wallet specified by x402scan. The team is crowdfunding while issuing tokens, and the real x402 protocol has simply been “exploited” a bit.

Don't rush to criticize me. This behavior, as I mentioned earlier, is a “charge” action that greatly benefits the exposure and dissemination of the value of the x402 track. It's equivalent to forcefully creating usage scenarios for the x402 protocol, and the effects are immediate. It can also be seen as a stress test for the x402 protocol, undoubtedly marking a “singularity in the narrative of x402,” which will give rise to a series of improvements and possibilities for ecological prosperity.

3. Will it evolve like the inscription market?

Yes, as mentioned earlier, the significance of PING actually lies in the x402scan indexer. However, it clearly has significant issues: for example, assets are custodied under its own centralized entity, which goes against the original intention of the x402 protocol to open payment channels for AI Agents, and it may not necessarily achieve seamless compatibility with other x402 protocols, nor does it have a unified standard for operations such as minting, transferring, and destroying.

So, following the logic of the evolution of BRC20-ARC20-SRC20-Runes, I believe there will be many new “inscriptions” that claim to be more “orthodox”.

For example, improving the custody method, changing the form of minting transactions, obtaining native protocol support, and so on. To exaggerate, even if the x402scan protocol runs away in the middle and the Treasury absconds with the funds, it cannot stop this wave from rising, the Pandora's box has already been opened!

Above.

I would like to reiterate a point: the outbreak of the x402 narrative is certain, and $PING has merely sounded the charge. There may be many ways the market evolves thereafter. The above sharing is just a cognitive logic and does not serve as any investment advice, but there is no need to be anxious. The upcoming excitement is definitely worth joining!