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According to The Block, the supply of Ether has climbed to its highest level since January 2023, equivalent to the level before the merger update on September 15, 2022. Data from ultrasound.money shows that the current supply of Ether is 120,521,523 ETH, about 383 ETH higher than the supply on the day of the merger upgrade. Presto Research analyst Jaehyun Ha said that last year's Dencun upgrade of this network was responsible for inflating Ethereum's supply and Ethereum’s status as an "ultrasound currency" (a type of deflationary asset making it a superior store value compared to Bitcoin) may be at risk. Jaehyun Ha stated: “With the launch of Dencun upgrade, Ethereum added support for blob transactions aimed at more effectively handling large data loads (especially L2).” “These transactions use a separate fee unit called ‘blob gas’, which is different from standard gas fees applicable in regular transactions.” As many transaction activities shifted towards blob transactions, this change led to a decrease in burn rate. "Reducing fees means that even if overall network activity remains high or increases,the balancing effect previously limiting net ETH supply is now less apparent."