CryptoQuant analysts say the Dencun upgrade has made Ethereum inflationary again, potentially killing its low-inflation currency characteristics.
Due to the Dencun upgrade, transaction fees on the Ethereum network have decreased. Ethereum destruction has dropped to one of the lowest levels since the merge, when Ethereum switched from proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanism. Ethereum's supply is growing at the fastest daily rate since the network merge.
CryptoQuant analysts say that before the Dencun upgrade, higher network activity on Ethereum meant higher fees burned, and therefore less Ethereum supply. However, after the Dencun upgrade, the total amount of fees destroyed has decoupled from network activity. (The Block)