CryptoQuant analysts have stated that the new supply of Ethereum is increasing at the fastest rate since the merge, as the costs incurred after the Dencun upgrade have significantly decreased. Prior to the upgrade, higher network activity on Ethereum resulted in higher costs, leading to a lower supply. However, after the Dencun upgrade, the total cost incurred has become detached from network activity.
The conclusion of the report is that Ethereum is not likely to experience deflation again at the current pace of network activity, and the narrative of Ethereum as an “ultra-sound” currency may have vanished or would require higher network activity to regain momentum.
