Analyst: ETH inflation stems from the Dencun upgrade, and the blob transaction mechanism weakens the burning effect

2025-02-05 16:39:52

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ChainCatcher news, according to The Block, the ETH supply has reached 120,521,523 ETH, an increase of about 383 ETH since the merge in September 2022. Presto Research analyst Jaehyun Ha explained that this inflation is mainly due to the Dencun upgrade implemented in March 2024.

The blob transaction mechanism introduced by this upgrade uses a separate fee unit, weakening the original ETH burning effect, which may affect Ethereum's deflationary properties as "ultrasound money."

DeSpread Research analyst Byoungjoon Kim pointed out that the recent meme coin craze has led to a significant shift of users and liquidity towards the Solana network, along with the emergence of numerous Layer 2 solutions after the Dencun upgrade, which has also impacted the Ethereum ecosystem.

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ETH inflation Dencun upgrade

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