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, a feature that has increased the demand for blob utilization.

Ethereum core developers implemented the Dencun upgrade on the mainnet earlier, introducing “blobs” 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 recent introduction of inscriptions on blobs has begun to stress test the feature. These inscriptions, inspired by Bitcoin Ordinals, generate unique fungible and non-fungible artifacts that are embedded within blob transactions.

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.

The increased interest and utilization have led Ethereum’s network 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.