Kaiko: Ethereum gas fees hit a five-year low, increased supply may suppress price hikes

According to Kaiko analysis, Ethereum's gas fees have recently hit the lowest level in five years, thanks to increased activity on layer 2 and the Dencun upgrade in March, which reduced transaction fees on layer 2. This fee reduction has an impact on $ETH because lower fees mean less $ETH is burned, increasing the token's supply. As a result, since April, the total supply of $ETH has been continuously increasing. Despite factors such as the demand for spot $ETH ETF driving the market, this ongoing increase in supply may suppress potential price increases in the short term.