If demand for block-space is inelastic (insensitive to price) even a small (25%) increase in demand can cause 7000x in price.
Longterm we either need to hope for elastic demand or develop other strategies to protect apps and user from fee explosions.

are there good ways to make blockspace elastic (provide more of it when in demand)?

Building FOSS via @frames, /open-frames to help decentralized social win. a16z CSX23. farcasterchannels.com farcaster.id

Blob space is already somewhat elastic. There is a target and max. When the price is rising it is because demand is exceeding the elastic limits. As they increase the max blob number it can be more elastic.