According to ChainCatcher, analysts at the data company CryptoQuant said that the Dencun upgrade has made Ethereum inflationary again, which may kill its low-inflation currency characteristics. Due to the Dencun upgrade, Ethereum burning has dropped to one of the lowest levels since the merger. Ethereum's supply is growing at the fastest daily growth rate since the network merger.
Prior to the Dencun upgrade, higher network activity on Ethereum meant higher fees burned and therefore less Ethereum supply. However, after the Dencun upgrade, the total amount of fees burned has decoupled from network activity. Analysts have concluded that at the current rate of network activity, Ethereum will not experience deflation again or will require higher network activity to come back to life.
