Inscriptions on the EVM chain decreased – why?

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Recently, transaction activity on the main Ethereum Virtual Machine (EVM) chain has recorded significant growth. According to data from blockchain analysis tool Etherscan, approximately 95% of transactions involve inscriptions.

Ordinal inscriptions are popular as a straightforward way to create NFTs on the blockchain, by embedding unique data into the transaction call data.

Imagine little capsules embedded in Bitcoin itself, containing images, text, and even videos. This is the serial number: a digital artifact permanently inscribed on the Bitcoin blockchain. Each inscription resides on a unique Satoshi (the smallest unit of Bitcoin), creating a unique and indestructible asset. Think of them as NFTs minted within the Bitcoin network itself.

Decode other letters

These inscriptions offer the same durability and security as Bitcoin, while also offering exciting possibilities. Artists can upload their work directly to create verifiable digital art. Limited edition items and collectibles can be minted, opening up new frontiers of digital ownership.

However, after a brief period of turmoil a few weeks ago, the increase in protocol inscriptions on the network supporting EVM smart contracts has slow down.

Weekly trading market share is driven by Inscription.Source: Dune Analysis

according to data From Dune Analysis, Inscription continues to cause mixed activity on Ethereum and Avalanche’s Goerli testnet, and they reduced Other popular layer 2 networks such as Polygon PoS sidechain and BNB chain.

Recent chart analysis shows a significant decline in these transactions. According to the latest data, the highest recorded number of inscriptions in the Avalanche network is approximately 370,000.

Regarding gas fees, some networks spent over $1 million in December when Inscription fever was at its peak. It is worth noting that Avalanche and Arbitrum reported gas fees of more than $5 million and $2 million respectively on December 16.

While some networks are starting to slow down gas cost After falling below $1 million, Avalanche maintained this pattern until December 21st. Gas rates have since dropped significantly, with a record high of around $16,000 at the time of writing.

Source: Dune Analysis

Inscription accounts for 77% of Avalanche transactions, 67% of Goerli transactions, 10% of Base transactions, 7.5% of ZkSync Era transactions, BNB Chain transactions and less than 5% of OP mainnet transactions in the past 7 days, and finally 1 Polygon PoS chain transactions percentage.

Is the party over?

In contrast, as of mid-December, Inscription accounted for more than 40% of the transaction volume of the BNB chain and Polygon PoS chain, and accounted for 50% to 75% of the transaction volume of Gnosis, Arbitrum and ZkSync Era.

Inscription activity has declined after a surge in activity in recent weeks as the Inscription protocol becomes more widespread on EVM-compatible networks.

After the original Inscription process was released in late November, activity surged, causing transaction fees to increase by approximately 4,500%, 6,900%, and 9,000% for Near, Polygon, and Fantom respectively.

This significant decline shows that the contribution to network costs fell sharply towards the end of the year. It’s unclear whether this heralds a short-term lull or eventual demise in the popularity of EVM inscriptions.