LIVEโ๏ธ CryptoQuant: Dencun Update Makes $ETH Inflationary Again
๐ฃ Analysts at CryptoQuant believe that the Dencun update has made $ETH inflationary again, potentially killing its characteristic as "ultrasound" money.
๐ Experts noted that after the Dencun update, Ethereum's transaction fees decreased, leading to a reduction in the amount of Ether burned to its lowest levels, similar to the transitional period between the two consensus mechanismsโPoW and PoS.
๐ They believe that at current network activity levels, Ethereum will no longer be deflationary, and the description of Ether as "ultrasound" money is likely dead, or would require much higher network activity to revive.
๐ Reminder that the Dencun update, implemented on March 13, 2024, facilitates the storage of additional data on the Ethereum network and reduces transaction costs.
