Ethereum is witnessing a significant increase in the usage of “blobs,” a data storage mechanism introduced in the network’s Dencun upgrade earlier this year. This trend highlights a growing shift towards Layer-2 solutions, which are driving faster and more cost-effective transactions on the blockchain.

According to data from pseudonymous analyst Hildobby’s Dune Analytics dashboard, the number of blobs posted to Ethereum has steadily averaged more than 21,000 this month, matching the record-breaking activity levels seen in March. Blobs, or binary large objects, enable the network to manage large chunks of data efficiently, offloading the information from the main Ethereum chain and reducing the strain on the network. Unlike call data, which is permanently stored on-chain, blobs are temporary and do not congest the mainnet, making Ethereum more scalable.

The surge in blob usage points to the increasing popularity of Layer-2 protocols like Arbitrum, Optimism, and BASE, which use blobs to group and process transactions off-chain before submitting them for final confirmation on Ethereum’s main chain. This shift is making Ethereum more accessible, while also increasing the demand for “blobspace,” a specific area within Ethereum blocks designated for storing this off-chain data.

“Transaction volumes for ETH and Layer-2 networks are hitting record levels, with transactions up 40% compared to summer. Meanwhile, the average blob count has grown by 20%, pushing Layer-2 blob fees to their highest point in the last month,” explained Matthew Siegel, Head of Digital Assets Research at VanEck.

Blobspace comes with a cost, determined by network conditions, and the fees paid for blob storage are burned, reducing the total supply of ether in circulation. This burning mechanism stands in contrast to the belief that Layer-2 solutions could hurt Ethereum’s main chain. In fact, the increasing demand for blobspace is a sign of Ethereum’s scalability and resilience.

Blob fees have recently spiked to $80, the highest level since March, and the average number of blobs per block has risen to 4.3. In the past week alone, over 166 ETH worth around $560,000 has been burned through blob fees, as reported by ultrasound.money.

“As blockchain activity intensifies, the price of blobspace is entering price discovery,” Artemis, a blockchain analytics firm, noted in its latest report. This increasing demand for Layer-2 solutions and blobs signals a bright future for Ethereum, as the network continues to scale and expand its capabilities.

Ethereum’s price has reflected this optimism, rising to a four-month high of $3,546 earlier this week, outpacing Bitcoin, which saw a slight decline. Although Ethereum has since pulled back to $3,370, the continued growth of Layer-2 solutions and the increasing use of blobs suggest that Ethereum is poised for further expansion, positioning it as a leader in blockchain scalability.