CryptoQuant analyst: Dencun upgrade makes Ethereum inflate again

CryptoQuant analysts have said that the Dencun upgrade has re-inflated Ethereum, potentially undermining its character as an ultra-sound currency.
Ethereum destruction has fallen to one of the lowest levels since Merge due to reduced transaction fees on the Ethereum network as a result of the Dencun upgrade, according to a report published by CryptoQuant on Wednesday. Merge refers to the process by which Ethereum transitions from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) consensus mechanism. The report added that the supply of Ethereum is growing at the fastest rate since the Ethereum network Merge.
Before the Dencun upgrade, Ethereum's higher network activity meant that the cost of destruction was higher, so there was less supply of Ethereum. However, after the Dencun upgrade, the total cost of destruction has been separated from the network activity, CryptoQuant analysts said.