Ethereum’s layer 2 networks are seeing a surge in activity. Over the past three days, the average number of blobs published to Ethereum hit a record high of 21,497, surpassing the previous peak in March. This increase is due to the growing popularity of rollups, which bundle and compress transactions on Ethereum’s base layer. Before the Dencun upgrade, rollups used expensive call data to store transaction information. However, blobs, a new, cheaper storage option introduced by Dencun, have made rollups more affordable.
The growing demand for blobs is evident in the increasing number of blobs per Ethereum block. This trend suggests that Ethereum’s layer 2 networks are not parasitic on the main chain, as some have argued. Instead, they contribute to Ethereum’s overall health and growth.
Recently, there has been a surge in demand for Ethereum’s blob space, leading to a significant increase in the number of blobs published daily. This increase, driven by the growing popularity of layer 2 networks such as Arbitrum and Optimism, has resulted in higher blob fees.
While some Ethereum holders benefit from increased ETH burning through blob fees, others, particularly those using layer 2 networks, face higher costs. However, this cost increase underscores the fact that layer 2 networks are not parasitic on Ethereum, but rather contribute to its health and growth by paying fees for using its infrastructure.
The shift of activity from the Ethereum base layer to layer 2 networks is part of a deliberate strategy to scale the Ethereum network and accommodate future growth. This trend, combined with increased ETH burning through blob fees, could have positive implications for the long-term value of Ethereum.
