Did Scaling Solutions Break the Ethereum Burn Mechanism?

Ethereum long marketed itself as ultrasound money. The core idea was that transaction activity would burn enough supply to keep ETH deflationary. This plan worked well when the main network was busy and expensive to use.

Now, the rise of layer two networks has changed the game. These solutions make transactions cheap and fast, which is great for users. However, because fewer people are paying high fees on the main network, there is less burning happening. The supply of ETH is no longer shrinking as quickly as some investors expected.

This shift creates an interesting problem for the network. While the technology is successfully scaling, the economic model tied to high mainnet usage is under pressure. Traders should watch how the supply numbers move in the coming months as the ecosystem continues to rely on these secondary networks.