EVM Chains Shatter Records: The Inscription Boom of 2023
In the dynamic landscape of blockchain technology, a new trend has emerged that has seen several networks, including Arbitrum and BNB Chain, reach unprecedented levels of activity. This surge is largely attributed to the ongoing craze to mint inscriptions on non-Bitcoin-base chains.
The Inscription Phenomenon
Data from an anonymous analyst known as “hildobby,” who is a data researcher at the crypto venture fund Dragonfly, reveals that numerous blockchain networks, such as Goerli, zkSync, Arbitrum, Gnosis, and the BNB Chain, reached their highest daily transactions per second (TPS) in December. Remarkably, inscriptions accounted for between 83% and 97% of the transactions on these five chains.
Inscriptions, in this context, refer to the process of recording data on the blockchain. This can range from financial transactions to the minting of new tokens. The surge in inscriptions indicates a growing interest and engagement in blockchain technology, beyond just the financial aspect.
In addition to the aforementioned chains, Fantom, Celo, Avalanche, and Polygon also hit new daily TPS records in November. Notably, Optimism recorded an hourly TPS of 87,960 on Dec. 19, and Avalanche achieved an hourly TPS record of 289,285 on Dec. 18.
These record-breaking numbers are a testament to the scalability and efficiency of these blockchain networks. They demonstrate the ability of these networks to handle a high volume of transactions, which is crucial for their adoption in various applications.
The Inscription Craze
Reflecting on the past couple of years, we’ve seen a significant increase in transaction counts on major blockchains, largely due to the recent surge in inscription activities. Concurrently, the expenditure on gas for creating new inscriptions has skyrocketed, reaching unprecedented levels.
This trend reflects the growing demand for block space on these networks. As more users seek to mint inscriptions, the competition for block space increases, leading to higher gas prices. This could have implications for the cost-effectiveness of these networks in the future.
The Role of EVM-Based Chains
Similar to Bitcoin Ordinals, users have discovered the ability to create inscriptions using transaction call data on chains based on the Ethereum Virtual Machine (EVM). This has opened up a world of possibilities, enabling them to mint a wide range of items, from meme coins to social media profile pictures. As a result, the demand for block space on these chains has seen a significant increase.
EVM-based chains offer a high degree of flexibility and functionality, allowing users to create a wide range of inscriptions. This has contributed to their popularity and the high level of activity observed on these networks.
The current trend of minting inscriptions on EVM-based chains is likely to continue into the foreseeable future. As more users discover the potential of these chains, we can expect to see further innovation and growth in this space. However, this also means that the demand for block space will continue to increase, potentially leading to higher gas prices.
The future of EVM-based chains will likely be shaped by how they manage these challenges. Solutions could include scaling improvements, gas price adjustments, or the introduction of new features to better manage demand.
The year 2023 has been a landmark year for EVM chains, with several networks reaching all-time highs in throughput due to the ongoing craze to mint inscriptions. As we move forward, it will be interesting to see how this trend evolves and what impact it will have on the broader blockchain ecosystem. The inscription boom of 2023 is a clear indication of the growing interest and engagement in blockchain technology. It highlights the potential of EVM-based chains and sets the stage for exciting developments in the future.