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The ethereum network is strained as demand for blob transactions increases, pushing capacity to the limit due to the popularity of signups.
Blobs are a feature that was introduced following the Dencun upgrade of the ethereum network earlier this month.
The update, which aimed to reduce the cost of Layer 2 transactions by replacing the traditional calldata method with blob transactions, has evidently achieved its objective. It has made transactions cheaper for end users by enabling Layer 2 solutions such as Arbitrum, Optimism, Base and Line use blobs to record transactions.
Reports indicate that “the rate of blob transactions on ethereum has increased, exceeding the established capacity of the network,” demonstrating the immediate impact of the Dencun upgrade. Adding blob inscriptions inspired by bitcoin Ordinals allows users to embed unique fungible and non-fungible artifacts within these transactions.
The feature has introduced a new dimension of usefulness for blobs, even though they are ephemeral and deleted from the network after 18 days. However, full archive nodes can retain this data indefinitely.
A recent analysis from Dune Analytics reveals a notable trend: 40% of blob transactions are now related to signups. The study shows a significant utilization rate, demonstrating the highest utilization among several ethereum (eth) L2 solutions.
Currently, the network faces a blob conflict, with blobs operating at a 100% utilization rate. The situation is further aggravated by a considerable backlog in the mempool, where 160 blobs are waiting to be processed. Given ethereum's current ability to include only up to six blobs per block, the delay is approximately 40 times greater than what the network can accommodate in a single block.
