 ▲ Ethereum (ETH) |
Cointelegraph, a cryptocurrency media outlet, reported that inflation in the supply of new Ethereum (ETH) tokens has continued for 73 consecutive days.
According to the Ethereum data dashboard ultrasound.money, Ethereum supply inflation has slowly begun following the merge upgrade. On April 14th (local time), more than 112,000 ETH was supplied in one day. This Ethereum supply inflation appears to be continuing the longest after the Merge upgrade in 2022.
The media cited the Dencun upgrade that took place on March 13 (local time) as the cause of supply inflation. The Dencoon upgrade introduced nine types of EPI, including EIP-4844, which reduces block data fees on the Ethereum layer 2 network by temporarily storing transactions separately. This was pointed out as the main cause of supply inflation.
Proto-danksharding, which was introduced during the Denkun upgrade, was also mentioned as an influential factor. Due to the influence of Proto Dank Sharding, Ethereum layer 2 network transaction costs have been reduced significantly, but the amount of Ethereum tokens burned on the mainnet has decreased significantly.
While Ethereum token supply inflation continues, demand for Ethereum leverage has been confirmed to have decreased.
In another article, the media cited DappRadar data and reported that no demand increase trend within the Ethereum network was recorded over the past seven days due to the influence of high gas fees. This is compared to the increase in activity and deposit amount of competing networks such as Solana (SOL) and Aptos (APT) during the same period.
The media diagnosed that as of the 25th, Ethereum recovered to the $3,400 support level, but retreated shortly after, and that the possibility of a rally is limited, considering the fact that major data records are combined.
