@zhangfeifei
As Layer 2 (L2) fees have plummeted—dropping 40-90% after upgrades like Dencun (2024) and Fusaka (2025)—Ethereum has seen explosive user growth and transaction volume shifting off L1. L2s now scale activity ~85x over L1.
However, ETH burning (via EIP-1559 base fees) occurs only on L1. Reduced L1 congestion has driven base fees to record lows, slashing daily burns to ~130 ETH (vs. issuance of thousands).
Current data shows net inflationary supply (+0.8%/year), with minimal blob-related burns despite high L2 usage. This weakens ETH's "ultrasound money" deflationary narrative short-term.
Longer-term, surging L2 data posting could boost blob fees and burns (potentially 30-50% of total by late 2026), but adoption currently favors issuance over deflation.
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