Ethereum Supply Sees Unexpected Surge Amid Low-Fee Environment

The Ethereum supply has increased by more than 20,125 ETH over the past seven days. This marks a notable shift from the deflationary trend observed after the Merge.

The increase in Ether supply is primarily driven by the balance between new issuance and the burn mechanism. Since the Merge, Ethereum has often been net deflationary, but when network activity drops, the burn rate decreases, allowing issuance to outpace it.

Lower-than-average transaction fees and reduced network congestion over the past week have likely contributed to this supply growth. This is a normal occurrence during periods of lower usage, reversing the narrative of Ethereum as a consistently deflationary asset.