The circulating supply of ETH has once again surged to record levels where it was before the Merge upgrade. This surge in ETH supply comes following a drastic increase in Ethereum blob transactions over the past few months.
According to UltraSound.Money, the supply of supply has increased to 120,521,600, which has increased back to the pre-Merge Upgrade levels.
While the Merge upgrade managed to bring down total ETH in circulation, the introduction of blob transactions in the Dencun upgrade has again drastically increased ETH supply.
Before the Dencun upgrade, users were paying gas fees for Ethereum transactions and a notable portion from this amount was burned, essentially reducing ETH market supply. Now as blob transactions – which handles large data payloads for layer 2 networks – have increased significantly, they counter the fee-burning as none of the blob-fees are burned.
Besides, the upcoming Pectra upgrade is expected to include an EIP that will further increase both the blob target and the maximum limit. This could lead to even greater inflation for ETH.
Ethereum is currently undergoing various developments like the recent increase in the gas limit to 36 million. Ethereum Foundation is also going through major changes with Vitalik Buterin himself looking after the team restructuring.
