Ethereum Supply Surge

The Ethereum network has seen an increase in its total supply by over 20,125 ETH in just one week, marking a notable shift from the deflationary trend observed after The Merge.

This change is primarily driven by the balance between new issuance and the burn mechanism. Since the Merge, Ethereum has often been net deflationary, meaning more ETH is burned through transaction fees than is issued to validators. However, when network activity drops, the burn rate decreases, allowing issuance to outpace it.

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