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The implementation of EIP-1559 aims to solve the congestion problem on the Ethereum network. After the London upgrade, users can submit transactions with a flexible priority fee (tip) on top of a required base fee to speed up their transaction confirmation. The tip will be included as a part of the block reward while the base fee will be burned under this mechanism. This proposal solves the problem of rising transaction fees, resulting in the possibility of ETH deflation inversely.
After The Merge, the consensus mechanism switched to PoS. Base reward is calculated as a floating price correspondingly, increasing the possibility of ETH deflation.
The recent rapid increment of ETH fee burnt leads to a deflationary ETH supply. The following data from the OKLink platform demonstrates the supply and demand change of ETH and its deflation situation.