Ethereum’s Supply Growth Sparks Concerns Over ‘Ultrasound Money’ Narrative
Ethereum’s token supply has reached 120,521,523 ETH, marking its highest level since January 2023 and surpassing pre-Merge levels. Analysts attribute this trend to the Dencun upgrade, which altered Ethereum’s fee structure and reduced the rate of ETH burning.Dencun’s Impact on Ethereum Supply
The upgrade introduced blob transactions, which operate under a separate gas model. As a result, fewer fees are burned compared to traditional transactions, leading to a net increase in ETH supply. Despite this, Ethereum’s network activity remains strong, and analysts do not view the inflation as an immediate concern.Upcoming Pectra Upgrade Could Accelerate Inflation
Ethereum’s upcoming Pectra upgrade, expected in the first half of 2025, could further increase supply inflation by expanding the blob transaction mechanism. Analysts warn that sustained inflation may challenge Ethereum’s positioning as a deflationary asset.Ethereum Leadership Debate Sparks Controversy
Alongside supply concerns, Ethereum has faced internal governance debates. A recent unofficial vote called for former researcher Danny Ryan to replace current executive director Aya Miyaguchi, but co-founder Vitalik Buterin dismissed the proposal. Several developers, including Eric Conner, have since left the Ethereum community in protest.
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