The inscriptions on the Ethereum Virtual Machine (EVM) seem to be on a steep decline, causing speculations about the end of the party. Data reveals that there has been a significant drop in inscriptions on various networks built on the EVM. In Q1 2021, the number of inscriptions per second reached an all-time high of around 11,000, but it has since plummeted to just a few thousand. This decline can be attributed to multiple factors, including the rise of layer 2 solutions, increased gas fees, and the saturation of the NFT market.
Layer 2 solutions like Polygon and Arbitrum have gained popularity as they offer cheaper and faster transactions compared to the main Ethereum network. These solutions allow users to perform inscriptions and interact with smart contracts at a fraction of the cost and time. Consequently, developers and users are migrating to these layer 2 networks, leading to a reduction in inscriptions on the EVM.
Another contributing factor is the expensive gas fees on the Ethereum network. As inscriptions became more popular, the demand for gas increased, driving up the fees. This made it less cost-effective for users to perform inscriptions, leading to a decrease in activity.
Furthermore, the NFT market, which heavily relies on inscriptions, experienced a saturation point. In the past few months, there has been an explosion of NFT projects, resulting in an oversupply of digital collectibles. With so many options available, users are becoming more selective, causing a decline in the overall demand for inscriptions.
In conclusion, the decline in inscriptions on the EVM can be attributed to the rise of layer 2 solutions, increased gas fees, and the saturation of the NFT market. While this may indicate a slowdown in inscription activity, it also signifies the evolution and maturation of the crypto ecosystem. As developers and users seek more efficient and cost-effective solutions, we may witness a shift in the way inscriptions are performed and the platforms they are built on. The party may have slowed down, but the crypto world always finds a way to keep the celebrations going.
