Understanding Immutable X: The Power of IMX in NFTs

Since the inception of Non-Fungible Tokens (NFTs), their popularity has skyrocketed, attracting not just crypto investors but also artists, celebrities, and people from all walks of life. However, as the NFT market grew, certain challenges began to emerge, most notably issues around scalability and high transaction costs. This is especially true on Ethereum, the blockchain most commonly associated with NFTs.

To address these pain points, Layer 2 solutions have emerged, offering faster and more cost-efficient transactions while maintaining the security of the underlying Ethereum network. One of the leading projects leveraging this model is Immutable X — a Layer 2 platform designed to streamline NFT trading and development. Let’s dive deeper into how Immutable X works and how its native token, IMX, powers the platform.

What is Immutable X?

Immutable X is a Layer 2 blockchain solution that aims to solve Ethereum's most pressing problems in the world of NFTs: high gas fees and scalability. By adding an additional layer to process transactions more efficiently, Immutable X makes NFT creation, trading, and management much cheaper, faster, and more accessible.

The platform was founded in 2018 by James and Robbie Ferguson, along with Alex Connolly, and collaborated with StarkWare to develop the technology behind it. Immutable X leverages ZK-STARK (Zero-Knowledge Scalable Transparent Arguments of Knowledge) technology, which allows it to batch multiple transactions together efficiently, drastically reducing the cost of transaction fees. This system also keeps all transaction data private, ensuring security and transparency.

By handling up to 9,000 transactions per second and cutting down gas fees, Immutable X offers an optimized and scalable solution for the NFT space, making it an attractive option for artists, creators, and collectors looking to avoid the congestion on Ethereum’s mainnet.

What is the IMX Cryptocurrency?

IMX is the native utility token of Immutable X and is fundamental to the platform's ecosystem. As an ERC-20 token, IMX has multiple use cases within the platform, including paying transaction fees, participating in governance, and staking.

• Transaction Fees: IMX is used to pay for transaction fees on the platform, helping to keep the network running smoothly.

• Staking: Token holders can stake IMX to participate in securing the network and earning rewards.

• Governance: IMX holders can vote on key platform decisions, including changes to tokenomics or the allocation of funds for development.

The total supply of IMX is capped at 2 billion tokens, and its uses range from ensuring the smooth operation of the platform to incentivizing users to participate in the network's growth and decision-making processes.

Use Cases for Immutable X (IMX)

IMX serves several purposes within the Immutable X ecosystem:

• Network Fees: Around 20% of network fees on Immutable X are paid using IMX. Importantly, users don’t need to manually convert their funds into IMX. The network automatically converts part of the payment into IMX to cover the fee.

• Staking Rewards: All the IMX collected from transaction fees is sent into a staking rewards pool. Users who actively stake their IMX tokens are eligible for daily rewards. To qualify for rewards, users must have made a trade, voted on a governance proposal, or staked IMX tokens within the past 30 days.

• Governance Participation: IMX holders also play a critical role in platform governance. By holding a certain number of IMX tokens, users can vote on platform decisions such as adjusting the token supply, allocating reserves, or funding new developer projects. The more IMX you hold, the greater your influence in the platform’s future.

IMX Price History and Future Trends

IMX was launched in November 2021, and its price saw a significant surge shortly after its release. Within weeks, it reached an all-time high (ATH) of $9.50 on November 25, 2021. However, the token’s price has since experienced a steady decline, reflecting the broader volatility of the cryptocurrency and NFT markets. As of February 2025, IMX is priced at $0.79, which represents a significant drop from its peak but indicates that it has maintained a steady value since its launch.

The future of IMX will depend on several factors:

• Adoption of Immutable X: The wider adoption of Immutable X's Layer 2 solution for NFTs and gaming projects will likely play a major role in the token's future growth.

• Growth of the NFT and Gaming Markets: If the NFT and gaming sectors continue to expand, Immutable X could become a critical player in facilitating transactions in these spaces.

• Cryptocurrency Market Sentiment: As with all crypto assets, the overall sentiment in the cryptocurrency market will impact IMX’s price and future trajectory.

If Immutable X can continue to position itself as the go-to platform for scalable, low-fee NFT transactions, IMX may see significant growth in both adoption and price.

Conclusion

Immutable X is revolutionizing the way NFTs are traded and developed by solving Ethereum's scalability and transaction cost issues. Through the innovative use of ZK-STARK technology and its Layer 2 solution, Immutable X is creating a faster, more affordable environment for NFTs to thrive. The IMX token plays a crucial role in supporting the platform’s infrastructure, allowing for governance participation, staking rewards, and fee payments.

As the NFT and gaming markets continue to grow, Immutable X stands to play a key role in the future of digital asset transactions. Whether you're an NFT creator, collector, or investor, understanding the power of IMX and its potential within the broader blockchain ecosystem is crucial for staying ahead in the rapidly evolving world of crypto.