PANews June 25 news, according to Blockworks, Ethereum's circulating supply has now been rising steadily for nearly 72 consecutive days, with an increase of nearly 50,000 ETH (about $168.7 million) since mid-April. Ethereum holders benefit from any net supply destruction caused by increased supply scarcity. However, the opposite is currently happening - Ethereum is becoming less scarce - and now Ethereum's base fee is at a low point in the past two years. At the same time, the number of Ethereum mainnet transactions has risen and Layer2 activity has surged.
Since the September 2022 merge, Ethereum has only been in inflation for long periods of time on a few occasions, the longest being 40 days shortly after the hard fork, and 30 days at the end of last year. Ethereum inflation is because there is far less base fees that can be burned. The March Dencun update gave the Layer2 network special space in each block to settle transaction "blobs" without bidding with regular mainnet users. This, combined with more efficient data availability achieved through proto-danksharding, has led to a significant reduction in competition for block space.
To be clear, Ethereum has destroyed a significant amount of supply since the merge, though most of it was before the blobs. Overall, 1.71 million ETH (~$5.8 billion) has been destroyed and 1.36 million ETH (~$4.46 billion) has been issued, resulting in a supply reduction of 346,000 ETH (~$1.17 billion).
