Ethereum blob limit increased to 21, expansion enters a new phase

The second BPO hard fork of Ethereum has gone live, increasing the blob limit to 21. This is another critical scalability optimization following last year’s Dencun upgrade. The main goal of this upgrade is to further enhance network scalability while reducing user costs. Based on current market data, the effects of this upgrade are already evident, and Ethereum is entering a new phase of expansion.

Technical Significance of Increasing the Blob Limit

What is the significance of increasing the blob limit

Blob is a key mechanism introduced in the Ethereum Dencun upgrade, used to store transaction data for second-layer solutions. Increasing the blob limit means that a single block can carry more transaction data, thereby increasing network throughput. Raising it from the previous level to 21 represents a significant capacity expansion.

Direct Impact on Network Costs

According to the latest data, Ethereum Gas fees have hit the lowest levels since mainnet launch, with some periods even below 0.03 Gwei. This achievement is a direct result of the gradual optimization of blobs. Transaction costs for second-layer applications have dropped significantly, making on-chain transactions more affordable for more users.

Positive Market Ecosystem Response

User Adoption Accelerates

Since the Fusaka upgrade on December 3 last year, the number of new Ethereum addresses has increased by approximately 110%, with an average of about 292,000 new addresses added daily. This indicates that scalability improvements are attracting more users into the ecosystem. The HODL Waves indicator also shows an increase in medium-term holders, with some investors taking profits, reflecting market recognition of Ethereum’s fundamentals.

Institutional Investors’ Deployment

In the past week, Ethereum ETFs under BlackRock purchased $102.9 million worth of Ethereum, and Grayscale’s ETHE became the first U.S.-listed spot crypto ETF that distributes staking rewards to shareholders, with a reward of $0.083178 per share. The continuous inflow of institutional funds and the launch of innovative products are strengthening market confidence in Ethereum.

Long-term Significance of the Scalability Roadmap

In line with Vitalik’s Vision

Vitalik Buterin recently emphasized that Ethereum’s core competitiveness lies in resilience and sovereignty, rather than just efficiency. The increase in the blob limit is an optimization within this framework, enhancing network capacity while maintaining decentralization. He also mentioned that Ethereum is approaching a solution to the blockchain trilemma, with upgrades like PeerDAS and ZK-EVM further promoting decentralization and security.

Support for Stablecoin Liquidity

According to the latest data, the transfer volume of stablecoins on Ethereum surpassed $8 trillion in Q4, setting a new all-time high. This indicates that Ethereum has become the main platform for on-chain financial flows, and scalability improvements make this liquidity more affordable and efficient.

Summary

Raising the Ethereum blob limit to 21 marks a new phase in scalability. With data showing record-low Gas fees, 110% growth in new addresses, and continuous institutional inflows, the scalability optimization is delivering tangible results. This not only validates Ethereum’s technical roadmap but also attracts more users and capital into the ecosystem. In the future, with further block expansion and the application of new technologies like ZK-EVM, Ethereum’s costs are expected to continue decreasing, and ecosystem activity to further increase.