Ethereum Merge a Factor in ETH’s Deflationary Turn

From blockworks.co

Ethereum’s native token, ether, has turned deflationary. Again. What’s driving the latest shift is a combination of factors, according to Blockworks Research analysts, previous reporting and crypto data providers. Among them: • NFT trading volumes picking up steam since the start of 2023 after a period of depressed activity. The result has been rising gas fees, which power transactions on the Ethereum network. That increase, in turn, has triggered “subsequent base fee burn” for traders, Blockworks Research analysts said. (Base fees set a floor for gas and are burnt, or removed from circulation, to control ... (full story)