After Ethereum's (CRYPTO:ETH) Dencun upgrade in March, which drastically reduced transaction fees, analysts from CryptoQuant observe a shift in its deflationary status.

Previously touted as an ultrasound money system akin to Bitcoin's (CRYPTO:BTC) sound money principle, Ethereum's narrative has evolved.

While upgrades like the London hard fork and the Merge (CRYPTO:MERGE) exerted deflationary pressure by burning transaction fees and transitioning to proof-of-stake, Dencun's fee reduction led to a decrease in ETH burned despite high network activity.

Consequently, Ethereum's deflationary trend has reversed, prompting reflections on its ultrasound money narrative.