A recent report from the cryptocurrency analytics firm Kaiko Research noted that Ethereum's gas rates have recently reached their lowest level in five years, primarily due to an increase in Layer 2 activity and the March Dencun upgrade, which significantly reduced the costs of Layer 2 transactions. This reduction in fees has had a profound impact on the Ethereum market, particularly because lower fees directly result in a decrease in the amount of ETH being destroyed, further increasing the total supply of tokens. Since April, Ethereum's total supply has been steadily rising. While there is concern about factors such as demand for physical Ethereum ETFs in the market, the trend of increased supply growth may pose a challenge to potential price increases in the short term.