Ethereum has entered its longest period of inflation since the Merge, lasting nearly 72 days and adding approximately 50,000 ETH to its supply. This inflationary trend is attributed to significantly lowered base fees following the Dencun update and a surge in layer-2 activity. Although the base fee reduction enhances user affordability and network efficiency, it simultaneously diminishes the deflationary mechanisms put in place post-Merge, resulting in a net increase in the total ETH supply.