Ethereum Burns 1.58M ETH, Supply Dips Below 120M Post-Dencun Upgrade

Following the Dencun Upgrade, Ethereum has seen a reduction in fees across both Layer 1 (L1) and Layer 2 (L2) networks, contributing to its deflationary trend with over 1.58 million ETH burned since the Merge, pushing the supply dip below 120 MILLION. Despite this, the demand for Ethereum blockspace remains insatiable, as indicated by the recent spike in gas fees to $15 per transaction on the base chain after a meme launch and the growing interest in blob fees, which are now THIS CHEAP for settling on L2s. The upgrade has sparked discussions on the value accrual for Ethereum, emphasizing the potential for increased adoption and use of ETH as money. However, challenges such as Ethereum missing 13% of its slots in the past hour, a significant increase in reorganizations, the exponential filling of blobspace, and 5 L2 outages in the past month have been noted. Additionally, Ethereum's scaling efforts are compared to Solana, highlighting issues like base fees rising by 700x and all L2s combined operating below 100 transactions per second (TPS), significantly less than Solana's performance. Over the past 2 and a half years, Ethereum blockspace demand has burned 4.2m ETH.