ETH supply just bounced back to pre-Merge levels, thanks to blob transactions from the Dencun upgrade, reducing ETH burns and increasing inflation.
Ethereum’s supply just shot back up to where it was before the Merge, all thanks to a surge in blob transactions. According to UltraSound.Money, ETH’s circulating supply now sits at 120,521,600, wiping out the deflationary impact the Merge once had.
Before the Dencun upgrade, Ethereum’s fee-burning system kept supply in check—users paid gas fees, and a chunk of that ETH was burned, reducing overall supply. But now, blob transactions, designed to handle massive data loads for layer 2 networks, don’t burn fees, meaning less ETH is removed from circulation. With blob transactions booming, ETH inflation is creeping up again.
Things could get even crazier with the upcoming Pectra upgrade, which plans to increase both the blob target and max limit. This would mean even more ETH flooding the market.
From supply to large-scale structural changes, Ethereum is changing big time. Just very recently, the gas limit jumped to 36 million, accommodating more transactions in each block. Furthermore, even Vitalik Buterin himself has gotten directly involved in restructuring the team at the Ethereum Foundation.
As these steps keep jolting the network, predictions regarding the future dynamics of ETH’s supply become increasingly difficult.
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