Amount of burned Ethereum is on rise, but it might not be enough for ETH to succeed on market
Ethereum’s burn rate is an extremely sensitive topic for the whole altcoin market, as ETH acts as one of the main drivers of the industry, and its burn rate is one of the main mechanisms of soft market control. In December, Ethereum’s burn rate took a massive plunge, causing panic among some Ethereum holders. Luckily, the situation has most likely changed.
According to the post shared by the Hal Press fund, Ethereum’s burn rate is on its way up after FUD emerged on the market following the swift reversal of most cryptocurrencies. However, despite being a negative factor for the market, a certain level of panic among investors benefits Ethereum.
In the meantime ETH burn going absolutely bananas. Now all FUD just contributes to burning more ETH. What a beautiful sight. pic.twitter.com/CKK4WBA8qB
— Hal Press (@NorthRockLP) January 18, 2023
As Ultrasound.Money suggests, the Ethereum supply offset reached 60%, meaning that most of the issued coins are getting destroyed and the network remains deflationary. Compared to December, this is almost a 60% MoM rise in the total amount of burned coins.
With the gradually increasing amount of burned tokens, the selling pressure on Ethereum should descend, creating more opportunities for investors on the market. However, it is important to note that the overall amount of burned Ethereum is not a panacea for ETH’s price.
The high burn rate is more of an effect rather than a cause of the successful performance of the network. After the rally of 2021 was over, Ethereum’s value has been going down continuously, and even a massive burning volume did not help ETH as an asset on the market.
At press time, Ethereum is trading at $1,527, with a 1% price increase in the last 24 hours after breaking the local resistance level reflected in the 200-day moving average.
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