The net supply of Ethereum has increased by 16,913 in the past week.
What does this mean? Simply put, the total amount of ETH in circulation has increased, which goes against the previous trend of 'burning > issuance' and the tendency of ETH to become deflationary. 33,794,062,234
Why is this happening?
Mainly because recent on-chain activity has cooled down, resulting in less ETH being burned, while the basic block rewards are still present, leading to a net increase in overall supply. With fewer on-chain transactions and low GAS fees, naturally, less ETH is being burned.
What does this imply?
The short-term scarcity pressure on ETH has eased, which is not an immediate blow to the price, but it is a potential minor bearish factor. Of course, one has to consider the macro environment as well, such as the explosion of Ethereum Layer 2, capital inflows, or the expectations for a big market in May; these factors might be more significant.
In summary:
An increase in supply is not a major issue, but it reflects the lack of on-chain activity, and on-chain activity is the real 'thermometer' that can determine the ETH market.
