Ethereum Virtual Machine (EVM) on-chain Ordinals Inscriptions transactions have surged, accounting for 95%

Reportedly, there has been a significant increase in transaction activity on the main chain of the Ethereum Virtual Machine (EVM) recently. Data from the blockchain analysis platform Etherscan shows that 95% of these transactions can be attributed to Ordinals Inscriptions. Ordinals Inscriptions is a method of embedding unique data in transaction call data to directly create non-fungible tokens (NFTs) on the blockchain, and its popularity is continuously rising. This new method allows users to write almost any digital artifact directly onto the blockchain, including images and text. Unlike traditional NFTs, these Inscriptions are fully contained within the blockchain. This trend initially appeared on the Bitcoin network, but Etherscan data indicates that this activity has shifted massively to EVM-compatible chains.

Inscriptions on EVM chains, such as Ethereum, rely on third-party services to index these transactions and apply token rules. Despite the counterintuitive reliance on third parties for indexing and applying token rules, the popularity of this method continues to rise. Since mid-November, the phenomenon of Inscriptions on EVM chains has been steadily increasing, leading to a significant increase in daily transaction volume, a surge in gas fees, and prolonged transaction processing times. On December 16 alone, the total gas fees for Inscriptions reached approximately $8.3 million.

This demand has impacted chains such as Ethereum, Avalanche, Arbitrum One, and BNB Chain, while also posing operational challenges to the Bitcoin network. Despite facing challenges, Etherscan's article suggests that the Inscriptions phenomenon serves as an effective stress test for blockchain and infrastructure providers, providing them with a unique opportunity to assess limits and adaptability.