Ether supply could be affected by Dencun upgrade

Luke Nolan, Ether Research Associate at CoinShares, said that Ether supply could be affected by the upcoming Dencun upgrade. The analyst explained that the Dencun upgrade will enable L2 transactions to be sent to the ethereum network via blobspace, an alternative to the current transaction calldata mechanism. Transaction calldata accounts for 90 per cent of the Gas fees paid by Layer 2. However, after the Dencun upgrade, Layer 2 can use the new blobspace mechanism instead of posting data via calldata, which significantly reduces Gas costs. So, if Layer 2 is expected to gradually move to using the new blobspace mechanism, the Gas price could stabilise at a lower level, which would mean that fewer Ether tokens would be destroyed, which would have an impact on the growth of Ether supply.