The Inscription Hype Drives Transaction Records on 9 Chains
The current frenzy around inscriptions has led to a surge in transaction volumes on various EVM chains like Arbitrum and BNB Chain. In fact, 83-97% of transactions on these platforms now involve inscriptions. The trend started with Bitcoin and Polygon and has now been adopted by other major chains like Dogecoin, Solana, and Avalanche.
Transaction Volumes Reach Year-end Highs
The ongoing inscription frenzy has resulted in an explosion of activity on platforms like Arbitrum and BNB Chain. Despite the recent setback in the market, these platforms are experiencing surging transaction volumes and setting new benchmarks. In November, other chains such as Fantom, Celo, Avalanche, and Polygon also reached new transaction peaks.
Transaction Fees Soar with Inscription Boom
Not only are transaction volumes increasing, but transaction fees are also skyrocketing. The concept of inscriptions, which tie NFTs to specific units of cryptocurrency, is proving to be financially beneficial for miners and validators. However, this boom is causing network congestion and frequent outages on platforms like Arbitrum and zkSync.
Gas Fees Surge Alongside Inscription Activity
The influx of inscription-related transactions has led to a sharp increase in gas fees on networks like Avalanche. For example, Avalanche witnessed a record-high of $5.6 million in inscription-related transaction fees. As more addresses engage in inscriptions, networks like BNB Chain and zkSync Era are becoming primary venues for this phenomenon.
Hot Take: The Inscription Craze Presents Challenges for Blockchain Scalability
The current hype around inscriptions is driving transaction records on various EVM chains. While it offers new opportunities for NFTs and financial benefits for miners and validators, it also poses challenges for existing blockchains. The surge in transaction volumes has resulted in network congestion, frequent outages, and soaring gas fees. This underscores the need for continued development in blockchain technology to handle increased demand and improve scalability.
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