- The total annualized issuance rate of ETH reduced substantially
- Circulation also decreased, adding to Ethereum’s deflationary nature
Many speculations were made regarding what would lie ahead for Етхереум [ЕТХ] post the Merge. One of the doubts that most had was around ETH’s deflationary nature. However, there was some clarity seen on that front as according to званични извори, ETH achieved a nearly zero total annualized issuance rate.
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Читати Предвиђање цене Етхереум-а [ЕТХ]. 2023-24
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Last year, Ethereum developers pushed the London upgrade that enabled the Ethereum burning. The reduced issuance rate, when coupled with the Ethereum burn, added to its deflationary nature and painted a positive picture for Ethereum’s future.
Deflationary characteristics amplified
As per Messari’s data, ETH’s supply also reduced considerably over the last few days. This further supported its deflationary characteristics.
#ЕТХ reached a declining supply this week.
Is the “ultra-sound” narrative no longer a meme? 🦇 🔊 pic.twitter.com/Tez25ZjEi6
- Мессари (@МессариЦрипто) Новембар 13, 2022
Interestingly, while the supply continued to decrease, Ethereum’s number of addresses holding 10+ coins just reached an ATH of 326,899. This development was positive, as it showed the confidence of investors in ETH.
📈 #Етхереум $ ЕТХ Број адреса које држе 10+ кованица управо је достигао АТХ од 326,899
Претходни АТХ од 326,856 забележен је 12. новембра 2022.
Прикажи метрику:https://t.co/6ggy1nLJIb pic.twitter.com/7T3DSrg6fO
- упозорења о Глассноде (@гласснодеалертс) Новембар 13, 2022
In theory, everything looked to be working in favor of ETH. However, these new updates did not seem to impact ETH’s price, as it was down by over 21% in the last week. At press time, ETH was трговински на 1,259.72 долара, са тржишном капитализацијом од преко 153.5 милијарди долара.
Hold on! This can be concerning for ETH
The king of altcoins’ metrics suggested that things might get even worse for ETH. This was because there was a possibility of a further price decline in the days to come. According to ЦриптоКуант, the net deposits on exchanges were high compared to the seven-day average, which was a negative sign as it indicated higher selling pressure.
Ethereum’s number of active addresses went down. This suggested a lower number of users on the network. The total number of transactions also followed a similar route, which was yet another bearish signal. Santiment’s chart also supplemented the aforementioned metrics. Though ETH’s Market Value to Realized Value (MVRV) went up over the last week, it was still not adequate. ETH’s exchange outflow also registered a spike, which was a bearish sign too.
Regardless, not everything was against Ethereum, as a few metrics indicated towards a trend reversal. For instance, ETH’s exchange reserve was declining. This was a positive sign indicating lower selling pressure.
Moreover, ETH’s network growth registered a considerable uptick in the last few days, suggesting the possibility of better days in the near future.
Source: https://ambcrypto.com/why-eth-investors-could-have-tough-days-despite-these-promising-updates/