Ethereum's Dencun Upgrade: Examining Its Impacts on Circulating Supply
Ethereum's Circulating Supply Impact
Ethereum's (ETH) circulating supply has increased by over 37,000 ETH in the last 30 days following the Dencun upgrade. This resulted in a 0.38% monthly inflation for the leading Web3 network, which has been deflationary since January 2023.
The Dencun Upgrade and Transaction Costs
The Ethereum network activated the Dencun upgrade on March 13, 2024, significantly reducing transaction costs through 'proto-danksharding.'
Effects of the Upgrade
The recent upgrade has sparked debates on Ethereum's supply dynamics and its impact on the 'ultra sound money' concept that emerged post 'The Merge' upgrade.
CryptoQuant Analysis
CryptoQuant's analysis reveals a shift in Ethereum's transaction fees and network activity post the Dencun upgrade, challenging the deflationary mechanism implemented previously.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.