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Ethereum Blobs Are ‘Insanely Bullish” For ETH Price: Breakthrough Research

Author: Content Editor
Tim Robinson, Head of Crypto Research at BlueYard Capital, has conducted simulations indicating that Ethereum's use of "blobs" could have a positive long-term impact on the price of ETH. Blobs, which are large data structures introduced in Ethereum Improvement Proposal (EIP)-4844, enhance the network's capacity and are crucial for Layer 2 scaling solutions. Robinson's simulations project Ethereum operating at 10,000 transactions per second (TPS) with an average cost of $0.06 per L2 transaction, burning 6.5% of its total ETH supply annually. The simulations also show an exponential growth in ETH burning as blob usage increases. Robinson highlights the scalability potential of blobs and the inverse relationship between ETH price and burn rate. The research has sparked enthusiasm and discussions within the Ethereum community, with experts noting the need to address potential inefficiencies and volatility in fees as blob capacity is reached. At the time of reporting, ETH was trading at $2,638.

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