Bittime - The crypto world is abuzz again with the latest news about Ethereum (ETH), the second largest cryptocurrency after Bitcoin (BTC).
The significant increase in Ethereum network activity post the implementation of Dencun, the latest update that launched on March 13, 2024, has had an interesting impact on the overall supply of Ether.
According to data from CryptoQuant reported by CNBC, the current supply of Ether has reached its lowest point since August 2022.
This decline occurred after the monumental event The Merge, the transition of the Ethereum network from a proof-of-work (PoW) mechanism to proof-of-stake ( Post).
Ethereum (ETH) Supply Decline Analysis
Based on analysis, the rate of decline in Ether supply is currently among the fastest, reaching 0.872% per year in the last 30 days. This figure far exceeds the decline after The Merge which was recorded at 0.246%.
Head of research at CryptoQuant, Julio Moreno believes that this phenomenon is caused by high network activity which leads to an increase in transaction fees (gas fees) and automatic burning.
Statistically, since The Merge, more than 1.56 million Ethereum (ETH) has been burned. This amount exceeds new Ether emissions which only reached 1.12 million. As a result, there was a net decrease of 446,000 Ether, which when converted to current prices is worth almost $1.62 billion.
Even though Solana network activity is showing a rapid upward trend, Ethereum is still showing brilliant performance. Ethereum's daily transaction average over the past seven days is near its highest point in the last 12 months, with 1.26 million transactions recorded today.
Moreno emphasized that high network activity triggers an increase in gas fees, greater burning of fees, and ultimately leads to a decrease in the overall supply of Ether.
Check Today's Crypto Market:
Positive Ethereum (ETH) Network Metrics
Furthermore, Ethereum network metrics show a positive trend. The number of active addresses reached a record high this year and in the last 12 months, namely around 540,000. A similar trend can also be seen in the creation of new addresses. More than 120,000 new Ethereum addresses were created today, the highest figure this year and the last 12 months.
Meanwhile, Ethereum (ETH) on-chain volume shot to its highest point of the year and 12 months, topping $7 billion today.
Impact of a Decline in Ethereum (ETH) Supply
This phenomenon of decreasing Ether supply has interesting implications for the future of Ethereum. Basic economic principles state that the rarer an item, the higher its value.
Although the correlation between decreasing supply and increasing Ether prices is not necessarily linear, this event is a positive indicator for the future of Ethereum (ETH). In addition, increasing network activity and Ethereum usage also supports the potential for Ether price increases in the future.
ETH (Ethereum) Price Today
Source: Bittime.com
On March 18, 2024, the price of ETH (Ethereum) was at $3,609 per coin, up 1.56% in the last 24 hours.
Also Read How to Buy Crypto:
Dencun and the Future of Ethereum (ETH)
Dencun's implementation marks a further step towards Ethereum 2.0, a major iteration that promises to bring improvements in scalability, security, and energy efficiency. Dencun itself focuses on delaying the difficulty bomb, a mechanism aimed at slowing down the Ethereum (ETH) network in the PoW era and encouraging the transition to PoS .
With Dencun, Ethereum developers get some breathing room to continue developing Ethereum 2.0 before the difficulty bomb becomes a serious threat. On the other hand, high network activity post-Dencun shows users' confidence in Ethereum's future.
Check Crypto Prices Today:
Conclusion
The latest news about Ethereum brings a breath of fresh air to investors and crypto users. The significant decline in Ether supply, combined with increased network activity and other positive metrics, is a potential indicator of Ethereum's future growth.
Even though the price of Ethereum (ETH) may not immediately increase due to a decrease in supply, these increasingly strong fundamentals are a valuable provision for Ethereum in facing intense competition in the crypto world. The implementation of Dencun as part of the journey towards Ethereum 2.0 also increases user optimism.
How to Buy Ethereum (ETH) on Bittime
You can buy and sell Ethereum (ETH) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Ethereum (ETH) is available on Bittime with the market pair ETH/IDR . To be able to buy ETH/IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Ethereum (ETH) on Bittime.
Monitor price chart movements for Ethereum (ETH), Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
Bitcoin Mining in the Halving Era: Gloomy Future or Bright Light?
A New Era of Crypto Lending: Kelexo (KLXO) Attracts the Attention of Tether (USDT) and Ripple (XRP)
ETH Price: 15,000 Ethereum Suddenly Change Hands During Dencun Upgrade?
DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.