According to "The Block" report, analysts from the blockchain data analysis company CryptoQuant said that the Dencun upgrade of the Ethereum blockchain has caused inflation in Ethereum (ETH) again, which may kill its use as a "supersonic currency." (ultra-sound) Characteristics of money.

CryptoQuant said in a report released on Wednesday (8th) that as transaction fees on the Ethereum network dropped due to the Dencun upgrade completed on March 13, the amount of ETH destroyed has dropped to the lowest level since the merge upgrade (the Merge). One of the lowest levels. The report also pointed out that the supply of ETH is growing day by day at the fastest rate since the network merger.

Source: CryptoQuant

CryptoQuant analysts said:

“Prior to the Dencun upgrade, higher network activity on Ethereum meant more fees were burned, and therefore a smaller supply of Ethereum. However, the total amount of fees burned has been decoupled from network activity after the Dencun upgrade.”

The report pointed out that based on the current network activity, Ethereum will not experience deflation again, and the narrative of Ethereum as a "supersonic" currency may have died, or it may require higher network activity to return to life. .

Ethereum supply changes since merge upgrade, source: ultra sound money

According to the Ethereum data website ultra sound money, "ultrasonic money" is an Ethereum meme that focuses on the possible reduction in the supply of ETH. This meme originated from Ethereum co-founder Vitalik Buterin, who jokingly mentioned the term "supersonic money" when talking about currencies with negative circulation growth in 2020. Later, Ethereum researcher Justin Drake described Bitcoin The "supersonic currency" meme was extended when the supply of Bitcoin and Ethereum changed.

if capped-supply BTC is sound money decreasing-supply ETH is ultrasound money pic.twitter.com/anu6QiZRcO

— Justin Drake (@drakefjustin) January 22, 2021

This article CryptoQuant: Ethereum is inflated again after the Dencun upgrade, and the “supersonic currency” narrative may have disappeared. First appeared on Zombit.

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