Bitcoin is not the only blockchain network experiencing congestion and high transaction fees. According to recent data, the daily gas spent on EVM (Ethereum Virtual Machine) inscriptions has surged to a record high of $8 million. This increase in gas usage is attributed to the growing popularity of Ordinals, a popular NFT (non-fungible token) project. As a result, EVM chains, including Ethereum, have also seen a spike in activity.
The rise of NFTs, especially projects like Ordinals, has driven up the demand for blockchain transactions. Ordinals is a generative art project that allows users to mint unique NFTs using custom algorithms. The project gained significant attention and popularity, leading to a surge in gas fees as users competed to mint and trade these NFTs.
While this surge in activity is positive for projects like Ordinals and the broader NFT market, it also highlights the scalability issues faced by blockchain networks. Ethereum, in particular, has long struggled with high gas fees and network congestion during periods of increased demand. The EIP-1559 upgrade implemented in August 2021 aimed to address some of these issues by introducing a fee-burning mechanism, but it hasn’t completely solved the problem.
EVM chains, including Ethereum, have become the preferred platform for NFT projects due to their smart contract capabilities and established network effects. However, the surge in gas usage and transaction fees has raised concerns about the accessibility and affordability of participating in these networks.
This record high in gas spent on EVM inscriptions reinforces the need for scalable and more efficient blockchain solutions. Several layer 2 scaling solutions, such as Optimistic Rollups and ZK-Rollups, are being developed to alleviate congestion on Ethereum and other EVM chains. These solutions aim to process transactions off-chain, reducing the burden on the main Ethereum network and making transactions faster and cheaper.
Overall, the surge in gas spent on EVM inscriptions highlights the growing popularity of NFT projects like Ordinals but also underscores the scalability challenges faced by blockchain networks. As the demand for NFTs and other blockchain applications continues to grow, the development and implementation of efficient scaling solutions will be crucial to ensure the accessibility and usability of these platforms.