{"id":11692,"date":"2024-03-18T14:12:55","date_gmt":"2024-03-18T12:12:55","guid":{"rendered":"https:\/\/forklog.com\/en\/ethereum-supply-declines-following-dencun-activation\/"},"modified":"2024-03-18T14:12:55","modified_gmt":"2024-03-18T12:12:55","slug":"ethereum-supply-declines-following-dencun-activation","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/ethereum-supply-declines-following-dencun-activation\/","title":{"rendered":"Ethereum Supply Declines Following Dencun Activation"},"content":{"rendered":"

Ethereum’s issuance has dropped to its lowest level since August 2022 following the significant Dencun update activated on March 13. This was reported by CNBC<\/a>, citing a report from CryptoQuant.<\/p>\n

According to Ultra Sound Money, the market inflow of ETH over the past 30 days fell to -0.88% compared to an average of -0.25% since the implementation of The Merge hard fork.<\/p>\n

\"22-Gwei-3572-ultrasound.money-Google-Chrome\"
Data: Ultra Sound Money<\/a>.<\/figcaption><\/figure>\n
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\u201cActivity on the Ethereum network has led to high transaction fees and, consequently, the burning of more fees,\u201d noted CryptoQuant’s head of research, Julio Moreno.<\/p>\n<\/blockquote>\n

According to The Block<\/a>, the network has reached annual highs in the number of active and new addresses, daily transactions, and their volume.<\/p>\n

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\u201cThe total number of daily transactions is at a record high not seen since May 2023. High activity leads to a sharp increase in fees, burning more coins, and reducing the overall supply,\u201d Moreno emphasized.<\/p>\n<\/blockquote>\n

Since the activation of the fee-burning mechanism during The Merge, approximately 7 million ETH have been issued, while about 4.2 million have been burned. The market supply of the asset stands at 120 million ETH.<\/p>\n

A key component of the Dencun update was EIP-4844. It includes the Proto-Danksharding<\/a> option, designed to scale the network by creating a new type of transaction for large binary data arrays (BLOB). The solution aims to reduce fee sizes for L2 protocols, especially those based on Rollups technology.<\/p>\n

Following the activation of the hard fork on the Ethereum mainnet, second-layer networks recorded a significant reduction in gas fees.<\/p>\n

\"fees-Google-Chrome\"
Data: Dune<\/a>.<\/figcaption><\/figure>\n

In the Base network, the number of daily transactions surged to a record 2 million from approximately 420,000 before Dencun.<\/p>\n

\"Daily-Transactions-Base-TK-Research-Google-Chrome\"
Data: Dune<\/a>.<\/figcaption><\/figure>\n

Rollups Benefit from Dencun. Is Base Leading?\u00a0<\/h2>\n

According to L2BEAT<\/a>, the Coinbase-backed protocol ranks sixth among L2 solutions by capitalization, with a value of $1.47 billion. This is ten times less than the segment leader, Arbitrum One.<\/p>\n

However, after Dencun, the Base network shows the lowest fees for interactions, such as with the leading DEX<\/span> Uniswap, slightly surpassing the Optimism mainnet with a TVL<\/span> of $8.14 billion.<\/p>\n

\"GasFees.io-Google-Chrome\"
Data: GasFees<\/a>.<\/figcaption><\/figure>\n

Uniswap founder Hayden Adams noted the success, stating that trading on Optimism now costs less than $0.01 per transaction.<\/p>\n

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Trading in Uniswap on Optimism now costs less than $0.01 in gas <\/p>\n

Let\u2019s fucking go, we\u2019re scaling ethereum<\/p>\n

Huge shoutout to everyone involved in shipping Dencun pic.twitter.com\/CDmWEvS8LW<\/a><\/p>\n

\u2014 hayden.eth ? (@haydenzadams) March 14, 2024<\/a><\/p><\/blockquote>\n