Kaiko: The continuous increase in Ethereum supply may suppress potential price increases in the short term

ChainCatcher message, cryptocurrency analysis company Kaiko Research released a report stating that due to increased Layer 2 activity and the Dencun upgrade in March reducing Layer 2 transaction fees, Ethereum's Gas fees recently hit a five-year low. This reduction in fees has had a significant impact on Ethereum, as lower fees mean less ETH is being burned, leading to an increase in token supply.

Since April, the total supply of ETH has been continuously rising. Despite demand-driven factors such as spot Ethereum ETFs, the ongoing increase in supply may suppress potential price increases in the short term.