Ethereum: BlobScriptions ignite crypto fees!

Ethereum is witnessing a striking reversal of its promises of reduced fees. Despite the highly touted Dencun upgrade, intended to democratize economic data access, a surprising feature has suddenly caused costs to skyrocket. Crypto developers are scrambling to understand the ramifications of this new surging fever. The precious asset of the blockchain might well turn against it.

A Viral and Disruptive Feature

Everything changed last Wednesday with the launch of Ethscriptions by developer Middlemarch. Indeed, this protocol allows users to directly inscribe multimedia content into Ethereum’s “blobs”. The blobs, introduced by Dencun, are economic data packets designed to smooth crypto transactions. However, users have rushed to this opportunity so rapidly that the once-free blobs have now become a scarce commodity.

The statistics illustrate an unparalleled virtual tsunami on Ethereum. In just a few days, more than 4500 “BlobScriptions” have been created by users. Furthermore, on Wednesday, as much as 41% of the newly generated blobs were dedicated to these inscriptions. Crypto users seem fascinated by the idea of immortalizing random texts and images on the blockchain, reminiscent of the early days of Bitcoin Ordinals inscriptions.

Exorbitant Crypto Fees on the Horizon?

Although the creator of Ethscriptions recommended the use of his official protocol, the registration frenzy seems unstoppable at the moment. As a result, after remaining almost free for two weeks, the fees for blobs have spectacularly exploded. In just one day, they surged from a meager gwei to over 500 gwei, the equivalent of about 18 dollars!

If the initial effects are focused on blobs, the entire Ethereum crypto ecosystem could feel the repercussion of this surge. Indeed, an increase in the number of missed slots has already been observed on Wednesday afternoon. Although the causes remain debated, many experts fear an impact on the base layer transactions.

Uncharted Territories

This unexpected situation raises multiple questions about the future of crypto. First, is it just a passing peak due to novelty, or a lasting trend that will take root? In the latter case, it could compromise one of Dencun’s main goals, which is to significantly reduce transaction costs on layer 2 (L2) networks.

Since its release two weeks ago, Dencun has indeed allowed the beginning of the transition towards affordable L2s, so hoped for by Ethereum users. However, if BlobScriptions continue to clog the low-cost channels, this benefit could be short-lived. Worse still, it would negate one of the main attractions touted by Ethereum’s crypto developers.

Even if the BlobScriptions frenzy proves to be temporary, the damage is already significant. For example, blob fees are currently fluctuating around 35 gwei, or $1.20, according to CoinBrain data. Although significantly lower than the peak of 585 gwei, this amount is still far from the symbolic rate of one gwei ($0.01) in place before the rush.

In summary, the sudden emergence of BlobScriptions completely reignites the debate on Ethereum’s actual capacity to offer low-cost crypto transactions. If this wave continues, it could challenge the benefits promised by Dencun. But also, plunge the blockchain back into an uncertain future. A potentially unstable new era seems to be opening before the astonished eyes of developers. Ethereum will need to demonstrate extreme agility to navigate through this delicate period of reassessment.