Blockchain Networks Struggle Under Pressure from Inscriptions
The recent surge in inscriptions on blockchain networks has caused several platforms to experience outages. Arbirtrum, Avalanche, Cronos, zkSync, TON, and Celestia have all been affected by the influx of inscriptions. Celestia is the latest network to succumb to the pressure. Videos have also surfaced showing mass minting on the Celestia network.
Arbitrum confirmed that a surge of inscriptions triggered their sequencer to stop relaying transactions properly, causing a 78-minute outage. Cronos implemented a network update to better withstand traffic spikes caused by high demand for inscriptions.
What’s Driving the Gold Rush?
Ethereum and other EVM-based chains are now being used for inscribing data on transaction calldata. This trend has emerged as a way for retail investors to access low-cap crypto assets. Inscriptions allow anyone to participate in the issuance of a specific ticker from day one, offering an opportunity for retail investors to get in early.
However, not everyone sees the logic behind this trend. Some believe it is simply a new hot trend with no rationality behind it.
Crypto Influencers Shilling Shitcoins
Crypto influencers have been accused of promoting low-market cap coins with less liquidity than their own follower count. This practice has raised concerns about influencers resorting to such tactics to trade profitably.
Inscriptions Spending and Gas Fees
According to Dune Analytics, over $6 million was spent on gas fees for inscriptions on December 18th, with a record-breaking $8.3 million spent on December 16th. However, Polygon founder Sandeep Nailwal noted that many minters were switching to Polygon due to its favorable gas fees.
Hot Take: Inscriptions Create Chaos in the Crypto World
The recent surge in inscriptions on blockchain networks has caused widespread disruptions and outages. While some see this trend as an opportunity for retail investors to access low-cap crypto assets, others view it as irrational and driven by speculative fervor. Additionally, concerns have been raised about crypto influencers promoting coins with lower market caps. Despite the chaos, there are still platforms like Polygon that offer favorable gas fees for inscriptions. As the trend continues, it remains to be seen how blockchain networks will adapt and handle the increasing demand for inscriptions.
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