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Key Notes
In November 2024, the average daily number of blobs posted to Ethereum exceeded 21,000, the highest since March.Blob fees, paid in ether and burned to reduce circulating supply, have surged, with the base submission fee reaching $80.Despite a 5% drop in Ethereum’s price today, market analysts predict that ETH could rally to $10K by mid-2025.The Ethereum blockchain network has been seeing a major surge in the usage of its data management tool “Blobs”, launched earlier this year. This highlights the growing adoption of Layer 2 scaling solutions, which offer faster and more cost-effective transactions.
It turns out that for this month of November, the number of blobs or binary large objects posted to Ethereum has delivered a daily average of more than 21,000. The Ethereum network is witnessing such record activity for the first time since March 2024.
For the first time, Ethereum introduced blobs with the Dencun upgrade. These are large data chunks attached to regular transactions, which store data off-chain and prevent mainnet congestion.
Courtesy: Hildobby / Dune Analytics
The surge in the number of blobs posted indicates a growing adoption of Layer 2 protocols like BASE, Arbitrum, Optimism, and others. These protocols leverage blobs to bundle transactions, process them off-chain, and then submit them to the Ethereum mainnet for verification. Speaking on the development, VanEck head of digital assets, Matthew Sigel said:
“Transactions for ETH and its L2s are continuing to reach all-time highs, now +40% vs. the Summer. Meanwhile, the average blob count has increased ~20% driving L2’s Blob Fees to a 30-day high.”
Rising Demand for Ethereum Blobspace
Blobspace represents a dedicated section within Ethereum’s blocks where the Layer 2 protocols store their data temporarily. These blob fees, paid in Ethereum’s native token, ether, are burned just like transaction fees, reducing the circulating supply of ETH ETH $3 314 24h volatility: 4.7% Market cap: $400.52 B Vol. 24h: $57.26 B . Thus, it negates the common assertion that Layer-2 protocols have been the reason behind Ethereum’s slow growth and progress.
On Monday, the blob base submission fee surged to $80, the highest since March, while the average number of blobs posted per Ethereum block increased to 4.3. More notably, blob fees have burned over 166 ETH, valued at around $560,000, in the past seven days. In its newsletter, Artemis noted:
“Blob fees have historically been very low since the implementation of blobs in EIP4844 as they have their own fee market which has largely not seen price discovery. Recently, as onchain activity has begun to spike, demand for blobspace on the L1 has increased, and the blob fee market has entered price discovery”.
Courtesy: Dune Analytics
ETH Price Action
Following Donald Trump’s announcement on raising tariffs on imports, Bitcoin and the broader crypto market have come under strong selling pressure. The Ethereum price has tanked 5% slipping all the way to $3,300 levels today.
Here’s the plan:
Bullish on $ETH until May, aiming for 10k.
Then, take profits and step back.
The real play is for 20k by the end of 2025.
Ride the early wave, then let the long-term gains roll in. pic.twitter.com/ScDVznnJ1e
— Wolf 🐺 (@IamCryptoWolf) November 25, 2024
Despite this, crypto market analysts continue to stay bullish about ETH eyeing a mega rally to $10K by mid-2025. Market analyst Crypto Wolf also predicts ETH will go to $20K by the end of 2025.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
