Ethereum has seen a sharp increase in the adoption of “blobs” over the past months, significantly impacting the blockchain network burn dynamics.

Blobs are temporary data packages that store large amounts of data off-chain. They were introduced with the EIP-4844 and designed to enhance Ethereum’s scalability by optimizing layer-2 operations without burdening the main blockchain.

According to Dune Analytics data compiled by Hildobby, Ethereum has averaged more than 21,000 blobs daily over the past two months. This trend highlights a growing preference for layer-2 scaling solutions offering faster and more affordable transactions.

Meanwhile, the Blobs posting process incurs fluctuating costs based on network demand. According to GrowthePie data, blob-related fees on Ethereum reached approximately $4 million in the past month. These fees, paid in ETH, are burned, permanently removing the tokens from circulation and influencing the top crypto’s supply.

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Author: Oluwapelumi Adejumo