ETH rallied to a 5-month high today. Additionally, ETH issuance is now the most deflationary since Merge switched the protocol to PoS. Prices hit their highest level since mid-September as stories from the Hong Kong crypto hub roiled markets, led by ethereum.
ETH issuance also fell to its most deflationary level since the merger occurred in mid-September.
The current circulation of ETH is 120.49 million pieces. Since the merger, it has shed 23,651 ETH or about $40 million, according to tracker UltraSound.Money.
With over 4,100 ETH being burned every day, the current supply is growing -0.7% per year. The fastest pace of deflation since the merger was recorded this week. However, natural gas prices rose this week, leading to higher burn rates.
#Ethereum‘S #deflation #speed Faster by the day. This has a very positive impact on supply and demand dynamics and should drive prices higher as demand increases. I think this will happen soon. #Ethereum #Ethereum pic.twitter.com/dnHVKBabuf
— Jesse Dow (@JesseLeeDow1) February 16, 2023
“Ethereum’s deflation is accelerating day by day. This has a very positive impact on supply and demand dynamics and will drive prices higher as demand increases. I think that will happen soon.”
organize Flock to Ethereum
Despite the U.S. Securities and Exchange Commission’s (SEC) crackdown on cryptocurrencies and attacks on staking services, staking remains a solid driver.
According to Ultrasound.Money, there are currently 16.6 million ETH staked on the beacon chain. At current prices, this is worth about $28 billion, or 13.8% of the total supply, which is currently shrinking at the fastest rate.
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In March, the Shanghai update will allow the issuance of pledged ETH in stages. Additionally, this is seen as beneficial for Ethereum as it will allow for more flexible staking options, such as liquidity staking for investors.
Ethereum’s supply economics and staking story aren’t the only factors driving the price up.According to the survey platform on the chain watch chaininstitutions have also pumped money into the asset over the past week.
Since February 2, several funds and institutions have poured nearly $1.6 billion into the crypto market. This is good for both Bitcoin and ETH as they both hit new 2023 highs today.
Raise the price of ETH
ETH prices hit $1,700 during Asian trading hours on Thursday morning. The asset was up 6.7% on the day after bouncing back to a multi-month high. However, strong resistance lies at this level.
At the time of writing, ETH is down slightly to $1,688.
ETH price chart 4 hours | Source: Tradingview
Some analysts predict the asset will hit $2,000 in the coming months as fundamentals strengthen. However, ETH is still down 65.3% from its November 2021 high of $4,878.
- Charlie Munger: ‘I’m not proud of America’ because it offers ‘damn cryptocurrency’
- ETH supply drops below 37% on merged exchanges
- Ethereum (ETH) Starts Recovery, But Will It Hit $2,000 This Month?
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According to Beincrypto
