Immutable X: A Layer 2 Solution for NFT Scalability

Since the emergence of the first NFTs, they have gained popularity among crypto investors, artists, celebrities, and people from all walks of life. However, this popularity has brought challenges, particularly in terms of scalability and transaction costs on the Ethereum network. To address these issues, the Layer 2 model has been introduced, making transactions seamless and efficient. One project utilizing this model is Immutable X, a leading blockchain platform for GameFi projects and NFT collections.

What is Immutable X and How Does it Work?

Immutable X is a Layer 2 solution designed to fix Ethereum’s biggest NFT problem: high gas fees. By adding an extra layer to process transactions more efficiently, Immutable X makes NFT trading and development faster, cheaper, and more accessible for everyone. The project was founded in 2018 by James and Robbie Ferguson, along with Alex Connolly, in collaboration with StarkWare.

Immutable X harnesses ZK-STARK technology to batch transactions efficiently while keeping all data completely private. This helps reduce blockchain congestion, boost security, and process up to 9,000 transactions per second — all while keeping gas fees low.

What is Immutable X Cryptocurrency?

IMX is the utility token of the Immutable X platform, core to its ecosystem. As an ERC-20 utility and governance token with a total supply of 2 billion, IMX serves multiple purposes within the network. It is used to pay for transaction fees, ensuring the smooth operation of the platform. IMX is also key in staking, allowing token holders to help keep the network safe and receive rewards.

Additionally, the token enables governance, giving users the ability to vote on platform decisions, and acts as an incentive for users to engage with the platform.

Use Cases of Immutable X Cryptocurrency

Here are some key use cases of the Immutable X cryptocurrency:

  • 20% of network fees are paid in IMX, but users don’t need to hold the token themselves. The network automatically converts part of the payment into IMX to cover the required fee.
  • All the IMX collected from fees is sent into a staking rewards pool. If you’re actively staking your tokens, you’ll receive daily rewards.
  • IMX cryptocurrency holders get a say in how the platform evolves. You can vote on decisions like adjusting the token supply, distributing reserves, or funding developers.

Immutable X Price History and Future Trends

The IMX token was launched in early November 2021, and just a few weeks later, it hit an all-time high of $9.50 on November 25. After reaching its ATH, the token’s price started to drop steadily, eventually falling back to where it started. As of February 2025, the token is priced at about $0.79, which means its value has barely changed since it was first launched, showing zero growth.

The future of IMX will depend on a few key factors: the adoption of Immutable X’s layer-2 solution, the growth of the NFT and gaming markets, and the overall mood in the cryptocurrency world. If its platform becomes more popular as a go-to option for faster and cheaper transactions in the NFT space, it could see growth.

FAQs

Here are some frequently asked questions about Immutable X:

  • How many Immutable X are there? Immutable X has 2 billion IMX tokens in circulation. Half of them are used for ecosystem growth, with the remainder set aside for the founders, fundraising rounds, and strategic marketing and partnership efforts.
  • What makes Immutable X unique? Immutable X stands out by addressing Ethereum’s key problems — sluggish speeds and steep fees. It uses a Layer 2 solution with ZK-STARK tech, which makes transactions way faster and cheaper, allowing thousands of transactions per second.
  • Is Immutable X secure? Yes, Immutable X is secure. By using ZK-STARK technology, it efficiently groups transactions, which helps keep data safe and reduces blockchain congestion. This keeps things fast and secure. Plus, being built on Ethereum means it enjoys the added security of Ethereum’s network, making it a dependable platform for NFTs and GameFi.

For more news and updates on Immutable X and the cryptocurrency world, visit Global Crypto News.

Post Views: 4