Ethereum prices haven’t been a top performer following the Merge despite the constant decline in ETH supply.
Ethereum supply decreased nearly 4k since Saturday However, the reverse is true: its price has not reflected the changes, but it has actually dropped almost four percent over the last few days, and is currently down by more than 21% since the historical Merge began the 15th of September.
It is the first time that ETH supply has become deflationary that is, basically, greater ETH getting destroyed than being created as the blockchain transitioned to PoS in the month of August. The decrease in supply is due to a new plan made in August that will cause some tokens to be burned when paying for gas.
In addition, the cost of gas has increased by 218% over the past week to the equivalent of 35 gwei. One reason for the increase is a newly launched project named XEN that allows users to make tokens free , provided that they pay their gas bills and has burned $1.85m in Ethereum within the last 24 hours, triggering claims that this is the result of a dump and pump.