The introduction of the Dencun upgrade on March 13, which included nine Ethereum Improvement Proposals (EIPs) such as EIP-4844, has led to a prolonged period of Ether supply inflation. Since April 14, over 112,000 ETH have been added to the total supply, according to data from ultrasound.money.
EIP-4844 introduced “blobs,” a feature that separates and temporarily stores transaction data, thereby reducing fees associated with block data on Ethereum’s layer-2 networks.
Additionally, Dencun introduced proto-danksharding, enhancing data availability and efficiency for block space on the Ethereum mainnet.
While the cost of executing transactions on Ethereum layer-2 networks like Arbitrum and Optimism has drastically decreased, the amount of ETH burned on the mainnet has seen a significant decline.
Despite recent inflationary trends in ETH supply, the total amount of ETH in circulation has decreased notably since the Merge.
Since September 2022, over 1.5 billion ETH has been burned, while 1.36 billion ETH has been minted, resulting in a net reduction of 345,000 ETH. This reduction is valued at just over $1.1 billion at current market prices, following Ethereum’s transition to a proof-of-stake consensus mechanism.
