#GasFeeImpact As of February 22, 2025, Ethereum's gas fees have reached a five-year low, with median prices dropping to 1.9 gwei as of August 10, 2024. This significant reduction is primarily attributed to the Dencun upgrade implemented in March 2024, which introduced data blobs to decrease transaction costs for layer-2 blockchains, and a notable shift in activity from Ethereum's main chain to various layer-2 solutions. While lower gas fees benefit users by reducing transaction costs, they have raised concerns about Ethereum's tokenomics. The network's deflationary mechanism, which burns a portion of transaction fees, has been impacted, leading to an increase in Ethereum's supply. Data from Ultra Sound Money indicates that nearly 13,400 ETH worth $34.1 million was added to Ethereum's supply in the seven days leading up to August 13, 2024. This trend contrasts with the deflationary narrative that many Ethereum proponents have championed in recent years. The situation has prompted discussions within the Ethereum community about potential