Etherscan Acquires Solscan as EVM Inscription Activity Declines Sharply Across Blockchain Networks

In a move that signals growing consolidation within the blockchain infrastructure space, Etherscan, the leading Ethereum blockchain explorer, announced its acquisition of Solscan, the popular Solana-based explorer, on January 6, 2024. The acquisition arrives at a time when transaction patterns across Ethereum Virtual Machine networks are undergoing a notable shift, with inscription-driven activity declining sharply from its December peaks.

TL;DR

• Etherscan acquired Solscan, bringing over three million monthly users under its umbrella
• Inscription activity on EVM chains dropped significantly from mid-December 2023 highs
• Avalanche still saw 77% of weekly transactions from inscriptions, but volumes plunged
• Gas fees on Avalanche fell from over $5 million to roughly $16,000 at the time of reporting
• BNB Chain and Polygon saw inscription share fall from over 40% to under 5%

Etherscan Expands Beyond Ethereum With Solscan Deal

Founded in 2015, Etherscan has established itself as the definitive block explorer for the Ethereum network, offering comprehensive data, API services, and analytics tools to millions of users. The acquisition of Solscan represents a strategic expansion beyond Ethereum’s ecosystem into the high-performance Solana blockchain, which has experienced a dramatic resurgence in activity throughout 2023 and into early 2024.

Solscan, launched in 2021, attracted more than three million monthly users by providing detailed address information, token and transaction data, API access, dashboards, and NFT metadata — features that closely mirror the functionality Etherscan users have come to rely on. The Etherscan team emphasized that the acquisition aligns with their mission of delivering reliable blockchain exploration services across multiple networks.

For the Solana ecosystem, the deal brings the backing of an experienced and well-resourced infrastructure provider. At the time of the acquisition, Solana’s native token SOL was trading around $94, having pulled back from a December peak above $120 but maintaining significantly elevated interest compared to most of 2023.

Inscriptions Lose Steam on EVM Networks

While Etherscan was expanding its reach, the transaction landscape across EVM-compatible networks was undergoing a significant shift. The inscription protocol frenzy that had dominated on-chain activity in late 2023 showed clear signs of cooling off by the first week of January 2024.

According to data from Dune Analytics, inscriptions accounted for over 40% of transactions on BNB Chain and Polygon PoS Chain in mid-December, and between 50% and 75% of transactions on Gnosis, Arbitrum, and ZkSync Era. By January 6, those figures had plummeted. BNB Chain and OP Mainnet both saw inscription-related transactions drop below 5% of total activity, while Polygon PoS Chain fell to just 1%.

The decline in inscription activity had a direct and dramatic impact on network fee revenue. In December, at the height of the inscription boom, Avalanche and Arbitrum reported gas fees exceeding $5 million and $2 million respectively on December 16 alone. By the first week of January, Avalanche’s highest recorded gas expenditure had fallen to approximately $16,000 — a decline of more than 99% from the peak.

Avalanche Defies the Trend With Persistent Inscription Usage

Despite the broader pullback, Avalanche stood out as an exception. Inscriptions still accounted for 77% of Avalanche transactions during the final week of the reporting period, a remarkably high share that suggests the network’s user base remained engaged with inscription-based activities even as other chains moved on.

Ethereum’s Goerli testnet also maintained elevated inscription activity at 67% of transactions, though testnet figures carry less market significance. Base, the Coinbase-backed Layer 2 network, saw inscriptions represent 10% of transactions, while ZkSync Era sat at 7.5%.

What Drove the Inscription Boom and Bust

The inscription phenomenon traces back to late November 2023, when native inscription protocols began spreading across EVM-compatible networks. The initial surge was explosive — transaction fees on Near, Polygon, and Fantom surged by 4,500%, 6,900%, and approximately 9,000% respectively as users rushed to mint inscriptions. The appeal lay in creating non-fungible tokens directly on the blockchain by embedding unique data in transaction call data, without requiring smart contract deployment.

However, the sustainability of inscription-driven activity came into question as gas costs normalized and speculative interest waned. The sharp decline in both transaction volumes and fee revenue suggests that much of the inscription activity was driven by short-term speculation rather than sustained utility. Whether this represents a temporary lull or a permanent shift remains uncertain, but the data through early January 2024 clearly indicated a cooling trend.

Why This Matters

The Etherscan-Solscan acquisition and the inscription market’s evolution represent two sides of the same coin — a maturing blockchain infrastructure landscape. On one hand, consolidation through strategic acquisitions signals that the industry is moving toward multi-chain tooling and professional-grade services. On the other, the rapid rise and fall of inscription activity demonstrates how quickly on-chain trends can emerge and fade. For investors and builders alike, these developments highlight the importance of distinguishing between sustainable infrastructure growth and transient speculative cycles.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.