Ethereum Becomes Deflationary First Time Since Combination – ETH Price Could Still Drop 50%
Annual rate of supply of ether (ETH) dropped below zero for the primary time since Ethereum’s transition to proof-of-stake via Merge in September. Reason? A spike in online activity amid huge the cryptocurrency market crash.
As of November 9, more Ether tokens are burned than created as a part of the Ethereum fee burning mechanism. Simply put, the more transactions within the chain, the more ETH transaction fees are burned.
Aether supply increase since November 11 Source: Ultrasound.MoneyEthereum on transaction fees within the last six months. Source: YChartsEther balance on all exchanges. Source: Glassnode 3-day price chart with symmetric triangle split setup. Source: Percentage of TradingViewEther Supply Maintained by Addresses with 10K – 10M ETH Balance. Source: Percentage of SantimentEther’s supply held by addresses with a balance of 10-10 thousand. ETH. Source: Awareness
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