The second most valuable cryptocurrency in the world, Ethereum, is trading relatively flat today, losing less than 1% in value. However, ETH remains well below $1300 and is currently trading at around $1220. The total market cap is $150 billion. The current FTX crash also cost Ethereum almost a quarter of the previous market capitalization. Liquidity issues and now bankruptcy have rocked the entire crypto market. Nevertheless, the FTX crash also had notable repercussions that could be positive for ETH in the medium term. Because the Ethereum network is currently deflationary and has far fewer coins in circulation than before the merger. Our Ethereum price predictions and current crypto news on deflation at Ethereum:
FTX Crash Fuels Ethereum Deflation
The FTX crash caused decent price movements and at times a large spike in transactions in the crypto crash. This, in turn, has driven up gas fees at Ethereum, which have been inextricably linked to the burning of Ethereum since the EIP-1559 update. The increase in ETH consumption has caused a massive increase in burning. It recently hit its highest level since June, when 5242 ETH was burned in a single day.
If you take the last 60 days since the Ethereum network meltdown, after the turmoil on the FTX exchange, there was real deflation for the first time, which translates into a drop in supply from the level of merger. There are currently almost 5800 less ETH in circulation than two months ago, so the annual deflation rate is 0.029%.
A total of 62,909 ETH have been burned in the past 30 days, bringing the burn rate to 1.46 ETH per minute.
The development of the offer is also exciting if we compare the Bitcoin or Ethereum network with the PoW mechanism. Because here you can see significant differences between a negative evolution for Ethereum PoS (-0.029%), an inflation of 1.716% for Bitcoin and 3.562% for Ethereum-PoW.
Technically difficult starting position
Over the past seven days, Ethereum has lost around 22%. Ether price is currently struggling with resistance at $1230. If this price level drops, the support area around $1060 would be targeted.
Trade Ethereum (ETH) for free here
These three ERC-20 tokens are currently on presale
The Ethereum network continues to be popular for new coins launched by their developers. After the merger, the Ethereum blockchain is even more suitable as an environmentally friendly solution. The promising roadmap should also improve scalability soon. Three new parts that can currently be purchased at low presale prices:
- Trade Dash 2 (D2T): At Dash 2 Trade, an innovative trading platform for cryptos is under construction. Officials have already been able to raise more than $6 million.
- RobotEra (TARO): Arguably one of the youngest ERC-20 tokens is TARO from RobotEra. A new metaverse game at the sandbox is to be created here.
- IMPT.io (IMPT): IMPT is an eco-friendly cryptocurrency that notably benefits from Ethereum’s 99.9% reduced power consumption. In one month, they raised over $12 million for blockchain-based emissions trading, including sustainable online shopping.
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