{"id":308683,"date":"2024-05-24T11:38:37","date_gmt":"2024-05-24T06:08:37","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=308683"},"modified":"2024-05-24T11:38:37","modified_gmt":"2024-05-24T06:08:37","slug":"low-ethereum-gas-fees-inflate-supply-by-50k-eth-in-one-month-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/low-ethereum-gas-fees-inflate-supply-by-50k-eth-in-one-month-crypto-news\/","title":{"rendered":"Low Ethereum Gas Fees Inflate Supply By 50k ETH In One Month – Crypto News"},"content":{"rendered":"

<\/p>\n

$238 million worth of ETH has entered circulation since April 14.<\/p>\n

\n

A spate of\u00a0unusually low\u00a0Ethereum gas fees resulted in Ether\u2019s supply growing by 50,550 coins over the past 30 days.<\/p>\n

Data from Etherscan shows average gas prices dropping below\u00a0$2<\/a>\u00a0during four days this month to tag a low of $1.70 on\u00a0May 18. The dip marked the lowest gas price recorded since October 2023.<\/p>\n

Ethereum gas prices. Source: Etherscan.<\/figcaption><\/figure>\n

According to Ultra Sound Money, Ethereum\u2019s supply has grown by\u00a062,646.61 ETH<\/a>\u00a0($238 million) since Ether\u2019s burn rate flipped inflationary on\u00a0April 14, pushing the number of circulating coins\u00a0up\u00a0to its highest level since\u00a0March 4.<\/p>\n

Low gas prices threaten Ethereum\u00a0deflation<\/h2>\n

Ethereum gas prices plummeted following the activation of Ethereum\u2019s long-awaited\u00a0Dencun upgrade<\/a>\u00a0on\u00a0March 13.<\/p>\n

Dencun introduced proto-danksharding, which drastically reduced the costs associated with Layer 2 transactions by replacing gas-intensive calldata with lightweight Binary Large Objects (blobs) via\u00a0EIP-4844<\/a>\u00a0\u2014 also known as proto-danksharding. Gas fees on top Layer 2 networks dropped by more than\u00a090%<\/a>\u00a0following the upgrade, also reducing the burden placed on Ethereum\u2019s mainnet by finalizing L2 transaction bundles.<\/p>\n

But while the reduction in L2 transaction baggage precipitated Ethereum gas prices falling by up to an order of magnitude from $21.58 on\u00a0March 13, Dencun also appears to have undermined Ethereum\u2019s deflationary narrative.<\/p>\n

Still, Ether\u2019s supply has dropped by 394,678 ETH ($1.5 billion) since\u00a0The Merge<\/a>\u00a0transitioned the network to Proof of Stake in September 2022. If the network maintained its former Proof of Work consensus and issuance model, 6.376 million coins worth $24.2 billion would have entered supply since September 2022.<\/p>\n

\"the-defiant\"
Ethereum supply since The Merge. Source: Ultra Sound Money.<\/figcaption><\/figure>\n

Layer 2 throughput surges since February<\/h2>\n

Activity on Layer 2 networks recorded a sharp increase between February and April, nearly tripling to an all-time high of 158 transactions per second (TPS) on\u00a0April 2\u00a0from an average of 54.6 TPS on\u00a0Feb. 1, according to L2beat.<\/p>\n

However, L2 throughput pulled back in April and dropped to a low of 88 TPS on\u00a0May\u00a011,\u00a0but has since rebounded to 121.8 TPS.<\/p>\n

The uptick\u00a0was\u00a0largely driven\u00a0by Arbitrum, which processed\u00a02.53 million<\/a>\u00a0transactions yesterday compared to\u00a01.51 million<\/a>\u00a0on\u00a0May 9, while Linea\u2019s\u00a0transaction count also jumped by roughly 100,100 to 472,800 over the same period, according to GrowThePie.<\/p>\n

Arbitrum\u2019s growth helped to offset a sharp drop in activity on Base as its\u00a0memecoin trading frenzy<\/a>\u00a0cooled, with Base\u2019s daily transaction count falling 37% to 1.91 million yesterday from more than 3 million in early April.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

$238 million worth of ETH has entered circulation since April 14. A spate of\u00a0unusually low\u00a0Ethereum gas fees resulted in Ether\u2019s supply growing by 50,550 coins over the past 30 days. Data from Etherscan shows average gas prices dropping below\u00a0$2\u00a0during four days this month to tag a low of $1.70 on\u00a0May 18. The dip marked the […]<\/p>\n","protected":false},"author":2,"featured_media":308685,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-308683","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/308683","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=308683"}],"version-history":[{"count":3,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/308683\/revisions"}],"predecessor-version":[{"id":308687,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/308683\/revisions\/308687"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/308685"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=308683"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=308683"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=308683"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}