Ethereum’s network is experiencing strain due to a surge in blob transaction demand, pushing its capacity to the limits. Blobs, a feature introduced in the recent Dencun upgrade, have gained popularity among users.

The Dencun upgrade, aimed at reducing the cost of Layer 2 transactions by replacing the traditional “calldata” method with blob transactions, has proven successful. This has made transactions more affordable for users, allowing Layer 2 solutions like Arbitrum, Optimism, Base, and Linea to utilize blobs for transactions.

Recent reports indicate that the rate of blob transactions on Ethereum has surpassed the network’s capacity, showcasing the immediate impact of the Dencun upgrade. Embedding inscriptions on blobs, inspired by Bitcoin Ordinals, allows users to include unique fungible and non-fungible artifacts in these transactions.

A new analysis from Dune Analytics reveals that 40% of blob transactions are now inscription-related, indicating a high utilization rate, especially among Ethereum’s L2 solutions.

Currently, the network is facing a blob contention, with blobs operating at full capacity. There is also a significant backlog in the mempool, with 160 blobs awaiting processing. With Ethereum’s current capacity to handle only up to six blobs per block, the backlog is approximately 40 times higher than what the network can accommodate in a single block.

The introduction of inscriptions on blobs has added a new level of utility, despite their temporary nature. Full archival nodes can retain this data indefinitely, offering potential for future use.

For more information on Ethereum’s recent developments, stay tuned to Global Crypto News.

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