Ethereum’s network activity is skyrocketing, with a record number of “blobs” being used to support faster and cheaper transactions via layer-2 (L2) scaling solutions. Introduced earlier this year, blobs have revolutionised how data is managed on the Ethereum blockchain.
What Are Blobs and Why Do They Matter?
Blobs, or binary large objects, were introduced in Ethereum’s Dencun upgrade to efficiently manage data. They attach large data chunks to transactions, storing them off-chain to prevent congestion. Unlike traditional call data that is permanently stored on-chain, blobs act as temporary data containers, lowering costs and enhancing scalability.
Adoption of Layer-2 Solutions Soars
Layer-2 protocols like BASE, Arbitrum, and Optimism leverage blobs to bundle multiple transactions, process them off-chain, and post them to the Ethereum mainnet for validation. This approach has significantly boosted activity. Pseudonymous analyst Hildobby’s Dune Analytics dashboard shows over 21,000 blobs are being posted daily, matching record levels seen in March.
Blobs posted on Ethereum by layer 2s
According to VanEck‘s head of digital assets research Matthew Siegel, “Transactions for ETH and its L2s are now +40% compared to the summer, with blob activity driving L2 fees to a 30-day high.”
Blob Fees Enter Price Discovery
As demand for Ethereum’s “blobspace” grows, fees for using blobs have reached unprecedented levels. Blob submission fees spiked to $80 on Monday, the highest since March, as average blob counts per Ethereum block climbed to 4.3. Over the past week, blob fees burned 166 ETH (worth $560,000), reducing the circulating supply of ether.
Artemis noted, “Blob fees have historically been low due to a separate fee market but are now undergoing price discovery amid rising demand.”
Ether Outperforms Bitcoin Amid Rising Activity
The increased adoption of blobs has positively impacted Ethereum’s native cryptocurrency, ether (ETH). It reached a four-month high of $3,546 on Monday, outperforming Bitcoin, which saw a 5% drop. Ether has since stabilised at $3,370, maintaining its bullish outlook.
With its innovative blob system and growing L2 adoption, Ethereum continues to strengthen its position as a leader in blockchain scalability and efficiency.
