📉 The supply of new Ether (ETH) is in its longest inflationary period since the Merge in 2022, which the Dencun update in March appears to be responsible for.

Since April 14, the total supply of ETH has increased by more than 112,000 units, according to Ethereum data.

Much of this inflation is due to the Dencun update that took place on March 13, which included nine Ethereum Improvement Proposals (EIPs), including EIP-4844, which appears to be the cause of the inflation.

EIP-4844 introduced "blobs" - a mechanism that allows transaction data to be temporarily stored separately, reducing the fee per block of data on Ethereum layer 2 networks.

Despite inflation, the overall supply of ETH has declined since the Merge. Since September 2022, over 1.5 billion ETH has been burned and 1.36 billion ETH added, resulting in a total volume reduction of 345,000 ETH, equal to over $1.1 billion at current prices.