Ethereum's deflationary mechanism, primarily driven by EIP-1559, can strengthen with higher network usage. EIP-1559 burns a portion of transaction fees, reducing ETH supply when demand rises. Increased network activity—more transactions, DeFi usage, or NFT trading—leads to higher fees, thus more ETH burned. Data from 2024 shows that during peak usage, burns often outpace issuance, making ETH temporarily deflationary. However, if usage drops, fewer fees are burned, potentially weakening this effect. The merge to proof-of-stake also lowered issuance, complementing the burn. While high usage amplifies deflation, scalability solutions like rollups may reduce fees, tempering the mechanism's intensity.