There has been a significant increase in the supply of ETH (Ethereum) since April 14, 2024

Supply growth: According to data from ultrasound.money, the supply of ETH has increased by more than 112,000 ETH since April 14, 2024.

Reasons for the increase: This increase in supply can be primarily traced to the Dencun upgrade on March 13, 2024. This upgrade introduced nine Ethereum Improvement Proposals (EIPs), of which EIP-4844 was the main cause of inflation. EIP-4844 introduces the "blob" mechanism, a mechanism that allows transaction data to be stored separately and temporarily. This mechanism reduces block data fees when executing transactions on Ethereum second-layer networks such as Abritum and Optimism. However, due to this change, the total amount of ETH burned on the mainnet decreased significantly, which resulted in an increase in the ETH supply.

Other relevant information: Since the merger, over $1.1 billion worth of ETH has been burned despite the increase in supply. This increase in supply, along with other factors such as ETH’s market capitalization and trading activity, affects the overall state of the Ethereum ecosystem.

To summarize, the supply of ETH has increased by over 112,000 pieces since April 14, 2024, primarily due to the EIP-4844 proposal introduced in the Dencun upgrade. This change reduces transaction fees on the second-layer network, but correspondingly reduces the amount of ETH burned on the mainnet, resulting in an increase in supply. #ETH🔥🔥🔥🔥