Does Ethereum’s surging supply signal better days for ETH?
The post Does Ethereum’s surging supply signal better days for ETH? appeared on BitcoinEthereumNews.com. ETH saw a significant surge in supply, in line with declining prices. A pivot could be in the cards as demand started making a comeback. Etherum’s [ETH] supply has reportedly soared to the highest levels that it has achieved in the last 10 months. A rising supply when demand remains constant or lower could lead to price dilution. But has this been the case for ETH? Is your portfolio green? Check out the ETH Profit Calculator A recent IntoTheBlock analysis revealed that ETH’s net issuance has been rising after bouncing from its 3-month low. The net issuance surged as high as 0.50%, which is not only the highest recorded during that period but also higher than Bitcoin’s inflation. Ether’s supply has been rising for the first time since December ’22. The low transaction fees and increasing daily issuance contribute to this inflationary trend. However, with a net issuance of 0.44% annually, ETH’s inflation is still well below Bitcoin’s. pic.twitter.com/znWSkP4bDA — IntoTheBlock (@intotheblock) October 14, 2023 So, does this net issuance surge reflect the price action? Well, that may not necessarily be the case because one has to also account for ETH burns and demand. However, if we cross-reference the issuance surge and the price action during the same period, we see that the price has been declining. We decided to explore ETH’s supply and its 2-year projection and found something interesting. Roughly 8 million ETH were in user accounts at press time. Moreover, about 27.7 million ETH were held by validators and 32.2 million were in smart contracts. Source: Ultrasound.money The analysis suggested that supply peaked sometime in the second half of September. It also projected that there will be a supply decrease in 2024. The same metric revealed that the ETH supply held by validators has been rising due…
The post Does Ethereum’s surging supply signal better days for ETH? appeared on BitcoinEthereumNews.com.
ETH saw a significant surge in supply, in line with declining prices. A pivot could be in the cards as demand started making a comeback. Etherum’s [ETH] supply has reportedly soared to the highest levels that it has achieved in the last 10 months. A rising supply when demand remains constant or lower could lead to price dilution. But has this been the case for ETH? Is your portfolio green? Check out the ETH Profit Calculator A recent IntoTheBlock analysis revealed that ETH’s net issuance has been rising after bouncing from its 3-month low. The net issuance surged as high as 0.50%, which is not only the highest recorded during that period but also higher than Bitcoin’s inflation. Ether’s supply has been rising for the first time since December ’22. The low transaction fees and increasing daily issuance contribute to this inflationary trend. However, with a net issuance of 0.44% annually, ETH’s inflation is still well below Bitcoin’s. pic.twitter.com/znWSkP4bDA — IntoTheBlock (@intotheblock) October 14, 2023 So, does this net issuance surge reflect the price action? Well, that may not necessarily be the case because one has to also account for ETH burns and demand. However, if we cross-reference the issuance surge and the price action during the same period, we see that the price has been declining. We decided to explore ETH’s supply and its 2-year projection and found something interesting. Roughly 8 million ETH were in user accounts at press time. Moreover, about 27.7 million ETH were held by validators and 32.2 million were in smart contracts. Source: Ultrasound.money The analysis suggested that supply peaked sometime in the second half of September. It also projected that there will be a supply decrease in 2024. The same metric revealed that the ETH supply held by validators has been rising due…
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