Inscriptions push blobs to reach set utilization limit on Ethereum

The rate of blob transactions on Ethereum has surged, exceeding the network's set capacity. This escalation follows the introduction of inscriptions on blobs, which has increased demand for blob space.

Ethereum core developers implemented the Dencun upgrade earlier this month, adding blob transactions to make Layer 2 transactions cheaper. They have been successful by allowing Layer 2s to use blobs instead of the “calldata” method for posting transactions — offering a direct path to fee reduction and passing these savings to end users.

However, the introduction of inscriptions on blobs has begun to stress test the feature. Inspired by Bitcoin Ordinals, these inscriptions generate unique fungible and non-fungible artifacts embedded within blob transactions. Blob-related inscriptions emerged despite blobs being ephemeral and removed from the network after 18 days — though full archival nodes can still maintain their data.

Analysis from a Dune Analytics dashboard maintained by Hildobby shows a significant trend: 40% of blob transactions are now related to inscriptions. This is the highest usage of blobs posted among other Ethereum Layer 2s such as Arbitrum, Optimism, Base, and Linea.

Blobs at 100% utilization rate

The increased interest and utilization have led blobs to operate at full capacity, with a 100% utilization rate observed.

The data further highlights a substantial backlog in the mempool, where 160 blobs await processing, according to data from EtherNow. Ethereum can include only up to six blobs per block, indicating a backlog that is 40 times higher than what can be accommodated in a single block — referred to as blob contention.