CryptoQuant Analyst: Ether's Dencun Upgrade Is Making ETH Inflationary Again

Analysts at data firm CryptoQuant say the Dencun upgrade has reflated Ether, potentially killing its low-inflation currency character. As a result of the Dencun upgrade, Ether burning has fallen to one of its lowest levels since the merger, when Ether moved from proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism, and Ether supply is growing at the fastest daily growth rate since the network's merger.Analysts at CryptoQuant said that prior to the Dencun upgrade, higher network activity on Ether meant higher burning costs and therefore less Ether supply. However, after the Dencun upgrade, the total amount of fees burned has been decoupled from network activity.