ETH - The Dencun Dilemma: Can Lower Fees Derail Ethereum's Deflationary Ambitions And Dampen Prospects Of A Price Surge? | Benzinga
While the much-touted Dencun Upgrade reduced the cost of using Ethereum’s (CRYPTO: ETH) Layer-2 solutions, it also rendered Ethereum inflationary, raising concerns about its price impact.
What Happened: Ethereum's total supply surged to its highest level in more than two months, according to Julio Moreno, Head of Research at analytics firm CryptoQuant. He attributed the steady increase to the Dencun Upgrade, which was executed in mid-March.
Ethereum supply growth continues to accelerate and total supply is now at the highest level since March 6.
The Dencun upgrade had the effect of lowering transactions fees, but also made ETH inflationary again.
EHT will need 3x-4x more network activity ...