The supply of ether could be impacted by the Ethereum network's upcoming Dencun upgrade, according to CoinShares Ethereum research associate Luke Nolan.

The Dencun upgrade will enable Layer 2 transactions to be sent to the Ethereum network through blobspace, an alternative to the current transactional calldata mechanism. This could result in reduced gas usage and, consequently, a lower amount of ether being burned.

All of the ether used to pay gas base fees for transactions is currently burned. 

"Transactional calldata makes up 90% of the costs Layer 2s pay in terms of gas fees. But after the Dencun upgrade, instead of posting their data through calldata, Layer 2s can use the new blobspace mechanism, which has significantly lower gas costs. So, if we expect layer 2s to gradually …