The decreasing supply on the Ethereum side supports Ethereum scarcity. Specifically; the current tightening dynamics in Ethereum's supply are fueling the recent price performance. According to the data, 118,906 ETH was removed from circulation over a period exceeding 24 hours. During the same period, 581.24 ETH was burned, and 118,325.71 ETH was issued, resulting in a net decrease in supply. The current annualized supply rate of Ethereum has decreased by -35.98%, which is proof that the asset is being used under deflationary conditions. This move was made following the activation of EIP-1559 and the Pectra upgrade, which caused an increase in transactions, leading to higher fee burns and a decrease in issuances. Deflationary actions limit the number of new tokens entering the market while sustaining increases in network usage. Along with high demand, this situation could create a scenario referred to by analysts as a "supply shock" (when the demand for an object exceeds its supply, causing the price to rise). #Ethereum