What is Immutable X: Understanding the power of IMX in NFTs

Since the launch of the first NFTs, they have gradually gained popularity not only among crypto investors but also among artists, celebrities, and people from all walks of life.

But popularity brought some challenges. Scalability and transaction costs quickly became major headaches, especially on Ethereum, the go-to network for NFTs. The Layer 2 model changed the game by addressing these pain points, making transactions seamless and efficient.

This is the same model that powers Immutable X, a leading blockchain platform for GameFi projects and NFT collections. Let’s take a deeper look at how this project works.

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 started in 2018, founded by James and Robbie Ferguson along with Alex Connolly, working together with StarkWare.

So, how does Immutable X work? It 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?

Immutable X (IMX) is the utility token of the Immutable X platform, core to how it works and its overall ecosystem. 

As an ERC-20 utility and governance token with a total supply of 2 billion, IMX serves a lot of purposes within the network. It is used to pay for transaction fees, making sure everything runs smooth and well on the platform. IMX is also key in staking, letting token holders help keep the network safe and get 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.

What is Immutable X used for?

Let’s go into more detail on the use cases of the Immutable X cryptocurrency:

• 20% of network fees are paid in Immutable X (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. To qualify, you need to have voted on a governance proposal or made a trade within the last 30 days and hold your IMX tokens either on L1 or L2.

• 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. To cast a vote, you just need to hold a certain number of IMX tokens — what that number is, though, is up to the community.

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, 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: how widely Immutable X’s layer-2 solution is adopted, 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.

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This article first appeared at crypto.news