Ethereum is experiencing a notable surge in blob usage, averaging over 21,000 blobs in November, matching record highs from March. This increase is attributed to the Dencun upgrade, which facilitates Layer 2 solutions in efficiently bundling transactions and posting them on the Ethereum network. The rise in blob usage signals growing acceptance of Layer 2 protocols such as BASE, Arbitrum, and Optimism, which leverage blobs to process transactions off-chain before confirming them on Ethereum. As a result, blob fees have spiked, leading to over 166 ETH (approximately $560,000) being burned in the past week. Notably, blob submission fees reached $80, marking the highest level since March. This increase reflects heightened demand for blobspace, suggesting potential upward momentum for Ethereum as it recently hit a four-month price high of $3,546 before pulling back to $3,370.

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