Author: Climber, LianGuai
On August 3rd, the leading “concept coin” eths on the Ethereum inscription protocol Ethscriptions reached a historical high of around $640. The surge phenomenon has not only amazed many investors but also gained recognition from domo, the founder of BRC-20.
eths was launched in mid-June, and the initial user minting cost was $0.8 to $1. In just a month and a half, the price has increased by about 640 to 800 times.
Just as Ordinals revitalized the Bitcoin ecosystem, eths is now attracting FOMO within the community. Can the inscription concept become the successor after the DeFi summer and NFT summer explosions?
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The popularity of eths
In recent days, several coin circle KOLs have successively posted on social platform X, expressing the continuous record-breaking of eths’ floor price. Yesterday, the price reached a high of $640.
Faced with the continuous rise of eths and the exaggerated price growth, some netizens are glad that they had the foresight to accumulate a considerable amount of eths. However, there are more voices of regret. Some netizens even say that it is easier to get rich by buying a few eths than sticking with a project for half a year.
As of the time of writing, the eths floor price has fallen to $550. However, many netizens still see this as a great opportunity to get on board and predict that the eths floor price will rise to $1000 in the near future.
The rise of eths has also changed the previously dismissive attitude of some KOLs, especially believers in Ordinals.
Panpan, a Chinese community KOL in Ordinals, believed on August 2nd that eths had no room for further growth. However, on August 3rd, he changed his viewpoint, bought eths, and said it was “really good”.
What is eths? How does Ethscriptions work?
eths is considered to be the first “concept coin” on the Ethereum inscription protocol Ethscriptions. The protocol also includes OG, etch, gwei, X, and other coins.
As the first “concept coin” on the Ethereum inscription, there are a total of 21,000 eths. They were all minted by users during the launch phase and now the only way to obtain one of the first 21,000 eths with recognized consensus is through off-chain transactions.
LianGuai provides a detailed introduction in the article “What is eths? Ethereum inscription concept coin is here too?” and mentions that in the early days when gas was still low, minting an “eths” required consuming 0.8U of gas. However, a few days later, when trading off-chain, sell orders were already reaching 100U each, and buy orders were 50U each.
According to Dune data, eths is the first “Ethereum inscription concept coin” deployed on the Ethereum mainnet, and the rules for subsequent minting are established by the first person who mints them.
Ethscriptions is similar to the Ordinals protocol on Bitcoin, allowing people to engrave different types of files on the Ethereum mainnet, as long as the size does not exceed 96KB. Specifically, the protocol adds remarks (in hexadecimal characters) to a transaction and records it in a block.
These engravings utilize the so-called Ethereum “calldata,” which refers to the data provided in the invocation of a smart contract.
How it works:
1. Any successful Ethereum transaction with input data that is a valid data URI (when interpreted as UTF-8) will create an Ethscription, as long as the data URI is unique. Duplicate content will be ignored. All valid MIME types are supported.
2. To maintain uniqueness, a URI must not have any Ethscriptions with the same content in the previous block or earlier transactions within the same block.
3. Any Ethereum transaction with the transaction hash of a valid Ethscription as its input data is a valid Ethscription transfer, as long as the transaction sender is the owner of the Ethscription.
Why does eths rise?
Eths is able to achieve historic highs, thanks to the attention and support of the founder of BRC-20.
The founder of BRC-20, domo, first expressed that it’s amazing to see the attention BRC-20’s semi-substitutability and composability design is receiving on Ethereum. I believe that there are still vast areas to be discovered by embracing the unique characteristics of this new asset class.
In response, Middlemarch, the founder of Ethscriptions, expressed honor to receive such praise, as Ethscriptions was born on the shoulders of giants.
Subsequently, domo jokingly hinted that this summer may belong to the concept of inscriptions.
Another reason that caused the rise of eths is the launch of Marketplace V2 by Ethscriptions.
Due to vulnerabilities in V1, on July 17th, Ethscriptions suffered an attack, resulting in approximately 202 eths lost across 123 addresses.
Shortly after, on July 25th, Ethscriptions rebuilt the marketplace and introduced a new protocol-level approach to address the Marketplace (ESIP-2).
At the same time, the new version also introduced a user collection feature, allowing users to display and query the inscriptions they purchased. In addition, the official launched GitBook, where users can contribute to the project’s development.
However, the main reason that continuously drives the rise of eths is the broad consensus formed by the community. It is their optimistic expectations for the future of eths, as well as a series of marketing promotions, that have propelled the price of eths to soar.
As early as June, fomo sentiment for eths was high in the Chinese community. In the Chinese community, investors relied on WeChat groups to place orders and found KOLs to act as intermediaries for guarantees, creating an off-exchange market.
Even in the past two days, there are still KOLs seeking to join similar groups in order to obtain more value information and profits from eths.