Ethereum network strained to capacity by surge in transactions.
The Ethereum network is experiencing strain as demand for blob transactions surges, pushing its capacity to the limits. This surge in popularity is a direct result of the introduction of blobs, a feature that was implemented as part of the Dencun upgrade earlier this month. This upgrade aimed to reduce the cost of Layer 2 transactions by replacing the traditional “calldata” method with blob transactions, and it has successfully achieved its objective. By enabling Layer 2 solutions such as Arbitrum, Optimism, Base, and Linea to utilize blobs for transactions, it has made transactions more affordable for end users.
Reports indicate that the rate of blob transactions on Ethereum has skyrocketed, surpassing the network’s capacity. This clearly demonstrates the immediate impact of the Dencun upgrade. By adding inscriptions on blobs inspired by Bitcoin Ordinals, users can embed unique fungible and non-fungible artifacts within these transactions. This function has introduced a new level of utility for blobs, even though they are temporary and removed from the network after 18 days. However, full archival nodes can retain this data indefinitely.
According to a recent analysis conducted by Dune Analytics, 40% of blob transactions are now related to inscriptions. This study highlights a significant utilization rate, with Ethereum’s L2 solutions showing the highest usage among various Ethereum options.
Currently, the network is facing a contention issue with blobs operating at full utilization. Additionally, there is a considerable backlog in the mempool, with 160 blobs awaiting processing. However, Ethereum’s capacity allows for only six blobs per block, meaning the backlog is approximately 40 times higher than what the network can handle in a single block.
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