The post Ethereum Blobs Are ‘Insanely Bullish” For ETH Price: Research appeared on BitcoinEthereumNews.com.

Este artículo también está disponible en español. Tim Robinson, Head of Crypto Research at BlueYard Capital, has unveiled groundbreaking simulations indicating that Ethereum’s implementation of “blobs” could be exceptionally bullish for the long-term price of ETH. In a series of posts on X, Robinson highlighted how blobs could revolutionize Ethereum’s scalability and economic dynamics. “Many people arguing about blobs, but so far no one has simulated how they respond to demand… until now,” Robinson stated. “TL;DR: Blobs are insanely bullish for ETH long term.” Why Blobs Are ‘Insanely Bullish’ For Ethereum Price Blobs, introduced in Ethereum Improvement Proposal (EIP)-4844, are large data structures designed to enhance the network’s capacity by efficiently storing and processing data off-chain. This mechanism is pivotal for Layer 2 (L2) scaling solutions, enabling them to offer lower transaction fees while maintaining security through Ethereum’s consensus. Related Reading Robinson’s simulation projects Ethereum operating at 10,000 transactions per second (TPS), burning 6.5% of its total ETH supply annually, with L2 transactions costing an average of $0.06. This scenario involves 16 MB of blobs per block, aligning with Ethereum co-founder Vitalik Buterin’s medium-term goals outlined in his latest “The Surge” post. “Yes, that’s Ethereum operating at 10k TPS, burning 6.5% a year while L2 transactions cost an average of $0.06, with 16 MB of blobs per block,” Robinson elaborated. “You thought L2’s were parasitic and Vitalik didn’t think this through? Ah, sweet summer child, little do you realize how insane this will get when the Ethereum ecosystem really kicks into high gear.” A key insight from Robinson’s research is the rapid escalation of ETH burning as blob usage increases. “It’s interesting how quickly blobs go from being free to burning a ton of ETH. It seems almost everyone doesn’t understand this tipping point. It also makes me think there…

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Filed under: News - @ November 1, 2024 1:09 am