ETH Deflation Thesis Breakdown
Regulatory developments and falling Layer-2 transaction costs are reducing confidence in Ethereum's deflationary potential.
Too little corroboration in the last 3 days to call a trend (3 articles). Watching for it to gain traction.
Still mostly niche and specialist coverage — not yet picked up broadly by mainstream press.
"Further, key Ethereum metrics have deteriorated, with its decentralized finance (DeFi) total value falling to $37 billion from last year's high of over $98 billion. It has made just $84 million in chain fees this year, meaning that it will likely not cross last year's $523 million."
""With modern Layer-2 networks now diverting transactional volume and capturing fee utility independently, Wo explains that the network's value accrual has been structurally different.""
"Institutional sentiment deteriorated further after JPMorgan published a bearish report warning that Ethereum’s future upgrades, including Glamsterdam and Hegotá, could continue weakening the network’s fee-burning mechanism."