Inventory space definitely feels like it shrinks the further into the game you get. Balancing out leveling up new weapon skills that become available to you later in the game with keeping your stronger weapons on you for harder, more serious encounters, plus some potions in case of emergency, the wisplight, belt and possibly the swamp key and wishbone, as well as your necessary tools, armor and food, you aren’t really left with a lot of wiggle room. I find that I have almost exactly enough spaces to carry all the loot that I really need to keep and nothing more, making it hard to naturally grind for weaker materials unless I’m actively farming them.