CryptoQuant analyst: Ethereum’s Dencun upgrade makes ETH inflationary again
Analysts from data company CryptoQuant suggest that the DenCun upgrade has caused Ethereum to experience inflation again, potentially stifling its low inflation currency characteristics. Due to the DenCun upgrade, Ethereum's burning rate has dropped to one of the lowest levels since the merge, when Ethereum transitioned 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. The CryptoQuant analysts say that prior to the DenCun upgrade, higher network activity on Ethereum meant higher burning costs, resulting in less Ethereum supply. However, after the DenCun upgrade, the total amount of burning costs has become decoupled from network activity.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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