How Inscriptions has impacted transactions across the board

Journalist

Posted: December 18, 2023

• Inscriptions transactions make up over 50% of transactions on Avalanche and BSC.
• There has been a rise in fees on both networks due to gas fees from Inscriptions.

While Bitcoin [BTC] Inscriptions presented one set of challenges, they introduced a different dynamic on networks like Avalanche [AVAX] and Binance Smart Chain [BSC].

This impact has recently been felt across various networks, but it has remained strong on these networks.

Avalanche and BSC lead in Inscription numbers

Hildobby’s data on Dune Analytics showed a recent uptick in hourly Inscriptions on different networks. While Avalanche and Binance Chain have maintained a consistent pattern, Arbitrum gained prominence around the 15th of December.

The hourly Inscriptions on Arbitrum were over 900,000 on the 15th and the 16th of December before experiencing a decline. Subsequently, zkSync took the lead, recording over 400,000 hourly Inscriptions between the 16th and the 17th of December.

Similar to Arbitrum, zkSync also witnessed a decline.

Source: Dune Analytics

In a prior AMBCrypto report, Arbitrum and zkSync had network interruptions attributed to a rise in transactions. This surge was directly linked to the increased Inscription transactions.

These platforms saw a rise in gas fees due to increased Inscription transactions. However, the chart showed that Avalanche experienced higher gas fees over the past four days than other platforms.

Source: Dune Analytics

Percentage of Inscription transactions in total transactions

Analysis of the daily transaction volumes on Avalanche and Binance Smart Chain showed a significant and sudden increase recently.

The transaction chart for Avalanche showed that since the 14th of December, the daily transaction count has consistently been over 5 million.

Furthermore, the data showed that Inscriptions accounted for over 87% of the transactions on Avalanche in the past 24 hours. 

Similarly, a closer look at Binance Smart Chain’s transaction numbers showed a slight change in trend. As of this writing, the daily transaction count on BSC was over 14 million.

According to Dune Analytics, Inscriptions made up almost 73% of the transactions on BSC in the past 24 hours. This suggests a notable impact of Inscription-related activities on overall transaction volumes.

How Inscriptions have impacted Avalanche and BSC fees

Analysis of Avalanche’s fees over the past few days showed a significant rise. According to DefiLlama, the fees on Avalanche have experienced an increase that has not been seen before.

On the 16th of December, the fees were over $6.8 million, marking the highest amount recorded. As of this writing, the fees were over $5.3 million.

The fee increase can be attributed to increased gas fees associated with Inscriptions.

Read Avalanche’s [AVAX] Price Prediction 2023-24

In contrast, Binance Smart Chain (BSC) did not experience a similar impact on fees. As shown by the chart on DefiLlama, the fees were around $447,000 at the time of this writing.

This showed that Inscription’s volume was yet to have a significant impact.