Ethereum’s once-deflationary status is under scrutiny following the Dencun Upgrade, which aimed to lower transaction fees but inadvertently slowed ETH burn rates. Since mid-April, over 112,000 ETH has been added to the supply, leading to the longest inflationary period since the network's transition to Proof-of-Stake (PoS). The current inflation rate stands at 0.59% annually, raising concerns about Ethereum’s “ultra-sound money” narrative. Despite this, scaling activities on Layer 2 networks and anticipation for Ethereum ETFs continue to drive network engagement.
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