- Since April 14, the total supply of Ether (ETH) has increased by more than 112,000 ETH.
- The overall amount of Ethereum burnt on the mainnet has reduced dramatically.
It seems that the Dencun upgrade to the Ethereum blockchain in March is to blame for the longest inflationary phase in the quantity of fresh Ether since the Merge in 2022. Since April 14, the total supply of Ethereum (ETH) has increased by more than 112,000 ETH, as reported by the Ethereum statistics dashboard ultrasound.money.
The March 13 Dencun upgrade is mostly responsible for this inflationary action. Among the nine Ethereum improvement proposals (EIPs) issued with this update is EIP-4844, the one most likely responsible for the inflation.
Overall ETH Burnt Reduced
The “blobs” feature, proposed in EIP-4844, reduces the fees paid for block data on Ethereum layer-2 networks by allowing transaction data to be temporarily stored separately. Better data availability for Ethereum mainnet block space was another benefit of Dencun’s proto-danksharding.
The overall amount of Ethereum burnt on the mainnet has reduced dramatically, while the cost of completing transactions on Ethereum layer-2 networks, including Abritrum and Optimism, has seen a large reduction.
The overall quantity of Ethereum has reduced dramatically since the Merge, even if it has been inflationary in the last few months.
Since switching to a proof-of-stake consensus method in September 2022, 1.36 billion ETH has been introduced to the Ethereum network, while 1.5 billion ETH has been burnt. This has reduced the entire supply by 345,000 ETH, or little more than $1.1 billion at current rates.
Since about the middle of June, the crypto market has been encountering strong negative momentum. Bitcoin price fell to $58,402 at the beginning of this week, its lowest point in eight weeks. Ethereum has also been under selling pressure, similar to Bitcoin. At the time of writing, ETH is trading at $3,373 as per data from CMC.
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