Ethereum 
$2,503 Demand for transactions occurring on Layer 2 (L2) networks is increasing along with various on-chain metrics. The average number of blobs sent to Ethereum over the past three days reached 21,497, exceeding the previous record set in March. This was made possible by the Dencun update, which reduced costs for L2 operations.
Increase in Blob Usage
After the Dencun update, the number of blobs added to each block in Ethereum blocks is constantly increasing. There are currently an average of three blobs per block, which is the number Ethereum developers are aiming for. “Ethereum blocks are consistently filled with three or more blobs, indicating increased demand for rollup transactions,” noted Eigen Labs product manager Teddy Knox.
Burning blob fees has a positive impact on tokenomics by reducing the supply of ETH. While 26.88 ETH was burned from blob fees in the last 30 days, this amount increased to 21.17 ETH in the last seven days. “There are two different views on increasing blob fees and rising costs,” said Paul Vaden of the Lyra Foundation.
L2s Appear to be Non-Parasitic to Ethereum
“This clearly shows that L2s are not truly parasitic, they are paying rent to send their data to Ethereum,” said Paul Vaden. Ethereum’s cash flows to L2 networks show a positive trend across networks such as Arbitrum, OP Mainnet, and Base.
While cash flow on Ethereum’s base layer was negative, L2 networks generated a total net inflow of $6.1 billion. This demonstrates significant growth and increasing user demand for L2s for the Ethereum ecosystem.
“The only way to engage the next billion users is to provide enough space for them,” says Eigen Labs’ Knox. “If it costs between $5 and $50 per transaction, widespread adoption of crypto will not be possible,” he said.
While the ETH price has remained stable over the last seven days, it has increased by 2.5% in the last 30 days, reaching $2,510.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
