Bittime - Ethereum (ETH) previously known as "ultra-sound money" is now facing new challenges. Dencun upgrades designed to improve scalability and reduce transaction fees have had the opposite effect on Ethereum's deflationary path.
Dencun Upgrade and Its Impact
The Dencun upgrade in mid-March was aimed at reducing transaction fees and increasing the efficiency of the Ethereum network. However, a recent report from CryptoQuant indicates that this upgrade has reduced the ETH burn rate significantly. This causes Ethereum to become more inflationary.
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Before the Dencun Upgrade, transaction fees on the Ethereum network were much higher, which resulted in greater ETH burn. However, after the upgrade, the average transaction fee decreased by around 4 times. As a result, the amount of ETH burned decreases, leading to an increase in Ethereum supply.
ETH Supply Increases Rapidly
After the Ethereum merger in 2022, the supply of ETH experienced a deflationary decline. However, since the implementation of the Dencun Upgrade, Ethereum has seen a rapid increase in supply. A CryptoQuant report revealed that since April, the supply of ETH increased by 400,000 tokens, marking a departure from its previous deflationary path.
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Potential ETH Price Correction
Dencun's impact on Ethereum's price and market sentiment cannot be ignored. Crypto analyst Shin Forex expects a significant price correction in Ethereum if ETH/BTC prices fall below the 0.05 support level. Ethereum's price drop could lead to a correction towards around $2,500 if ETH falls below 0.04 BTC.
Also read: Ethereum Dencun Upgrade: This is What You Need to Know!
The Ethereum market is currently facing bearish sentiment, with the price of ETH hovering around $3,025. Even though it has experienced a small increase in the last 24 hours, Ethereum price still shows high volatility.
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The Dencun upgrade has turned Ethereum's deflationary path into an inflationary path. With the ETH burn rate decreasing and supply increasing, Ethereum is facing new challenges that may affect the price and market sentiment. Analysts predict potential further price correction if ETH/BTC falls below critical support levels. Investors and market observers will continue to monitor these developments closely.
How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on 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 Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also read:
Ethereum Dencun Launches on Holesky Testnet
Interesting Facts About the Dencun Ethereum Upgrade, You Must Know!
Impact of Ethereum Dencun Upgrade on Polygon Network (MATIC)
Dencun Ethereum Upgrade Potentially Reduces Ether Burn
DISCLAIMER: This article is informational in nature and is not an offer or invitation 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.
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