Ethereum Supply Has Flipped to Inflationary for the Past Two Months
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ETH has gradually inflated, with over 112,000 ETH added to the overall supply since April 14
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While ETH supply has flipped inflationary in recent months, the total supply of ETH has still decreased significantly since the Merge. (by approximately $1.1B in Dollar value)
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In total, more than 1.5 billion ETH has been burned since September 2022, while 1.36 billion ETH has been added since Ethereum switched to a proof-of-stake consensus mechanism (the Merge).
According to Ethereum data dashboard ultrasound.money, the supply of new Ether is in its most extended inflationary spell since the Merge in 2022.
The Dencun Upgrade seems to be the reason for this shift: Dencun introduced nine Ethereum improvement proposals (EIPs), including EIP-4844, which seems to be the primary cause of the inflation.
EIP-4844 introduced “blobs,” a mechanism that allows transaction data to be stored separately and temporarily, reducing the fees paid for block data on Ethereum layer-2 networks.
Dencun’s proto-danksharding resulted in more efficient data availability for block space on the Ethereum mainnet, leading to a massive reduction in the cost of executing transactions on Ethereum layer-2 networks such as Abritrum and Optimism.
https://cointelegraph.com/news/ethereum-supply-inflated-for-73-days-straight
https://cointelegraph.com/explained/what-is-the-ethereum-dencun-upgrade-and-why-is-it-important Show Less
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