It is reported that the supply of ETH has steadily increased from mid-April to the Dencun upgrade, reducing the competition for block space for the primary.
The supply of fresh Ether ( ETH) is currently in its longest period of inflation ever since Merge in 2022. Dencun’s upgrade to the blockchain in March may be at fault.
The supply of Ethereum has been steadily growing, and more than 112,000 ETH has been added to the total supply since April 14, like the Ethereum information Dashboard ultrasound. Money.
A large portion of these activities can be traced to the Dencun change, which was approved on March 13 and included 9 Ethereum Improvement Proposals (EIPs), which included EIP-4844, which is believed to be the cause of the rise in prices.
The EIP-4844 protocol introduced “blobs” — a mechanism that permits transactions to be saved independently and for a short period of time, thereby reducing the costs associated with blocks for block data Ethereum Layer 2 networks.
In addition, Dencun introduced proto-dank sharding, which resulted in greater data availability and efficiency for blocks within Ethereum’s main net. Ethereum mainnet.
This led to a significant reduction in the cost of transactions executed using Ethereum Layer 2 networks like Abritrum or Optimism. The amount of ETH burnt on the main net is significantly reduced.
Although the ETH supply has been flipped into inflation during the past few weeks, the overall quantity of ETH has decreased significantly since the merger.
Over 1.5 billion ETH was burned since the end of September 2022, and 1.36 billion ETH was added, leading to a reduction in the supply of 345,000 ETH, which is around $1.1 billion at the current price after the transition to the proof of stake consensus mechanism.
