Increase in enrollments on EVM chains: Etherscan reports

A recent development has seen a substantial increase in transaction activities on major ethereum virtual machine (EVM) chains.

According to Etherscan, a widely used blockchain analytics platform, 95% of these transactions can be attributed to signups.

The wave of ordinal inscriptions

Ordinal inscriptions, which involve incorporating unique data into transaction call data to create non-fungible tokens (NFTs) directly on the blockchain, have gained popularity.

This new approach allows users to inscribe virtually any digital artifact directly to a blockchain, including images and text. Unlike traditional NFTs, which are typically stored off-chain and linked via metadata, these inscriptions are entirely contained within the blockchain.

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95% of transaction activity on major EVM chains has been registrations over the past few weeks.

Let's take a deeper look at the impact it has had on these chains from a block explorer perspective pic.twitter.com/8xDanPLydH

-Etherscan (@etherscan) December 20, 2023

This trend was initially observed on the bitcoin network, but Etherscan insights reveal a significant migration of this activity to EVM-compatible chains.

Unlike bitcoin, where inscriptions are done in satoshis (the smallest btc unit), ethereum and other EVM chains perform this function within the transaction input data, avoiding the need for the chain's native token unit. of blocks.

ethereum listings rely on third-party services to index these transactions and apply token rules. Typically, these functions are handled natively by smart contracts within the ethereum network.

Etherscan notes that this method, while counterintuitive due to its reliance on third parties for indexing and token rule enforcement, has not prevented its growing popularity.

Registration craze drives record $8.3 million gas fees

Despite seeming contradictory, the phenomenon of registrations has been increasing in the EVM chains since mid-November. This increase in activity has had notable consequences, including a significant increase in daily transactions, skyrocketing gas fees, and longer transaction processing times.

On December 16 alone, the total gas fees spent on registrations reached approximately 8.3 million dollars.

This lawsuit has affected ethereum and other chains such as Avalanche, Arbitrum One, and BNB Chain, while also causing operational challenges on the bitcoin network.

Furthermore, the implications of this trend for the market are profound. For example, the bitcoin Frogs Ordinals collection quickly emerged as a market leader with a capitalization of $182 million. Saw secondary sales. bitcoin-frogs” data-wpel-link=”external” target=”_blank”>increase to $4.8 million on December 17, indicating significant market interest.

In a way, the enrollment phenomenon can be seen as a good stress test for blockchains and infrastructure providers to evaluate their limits.https://t.co/mbfcxT4cKS

– Etherscan (@etherscan) December 20, 2023

Despite the challenges, Etherscan's publication suggests that the enrollment phenomenon is an effective stress test for blockchains and infrastructure providers, and offers a unique opportunity to evaluate their limits and adaptability in the face of changing demands. .

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