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Blockchain News

Ethereum Hits Ten-Week High and Turns Deflationary Again

Ethereum prices have risen to their highest point in ten weeks. Furthermore, as network demand increases, ETH issuance has returned to deflationary zone.

During the morning of January 16, Ethereum prices approached $1,600. ETH reached its highest price since November 8 this morning, reaching $1,589 after building on weekend gains.

The asset has gained 3% in the last 24 hours and was trading at $1,568 at the time of publication. Furthermore, ETH has risen more than 30% in the last two weeks. It has outpaced Bitcoin, which has gained 27% during the same time period and 2.1% on the day.

A few months before the Shanghai upgrade, the positive trend for Ethereum is building. This will allow for the gradual withdrawal of staked ETH that has been parked on the Beacon Chain for longer than two years.

Following a disastrous 2022, Ethereum’s on-chain fundamentals have also improved this year. According to the Ultrasound Money tracker, ETH issuance has once again entered deflationary zone. It was reported at the time that the current supply growth rate is -0.09% per year.

The annual burn rate for Ethereum is now around 732,000 ETH. The annual issuance rate is roughly 622,000 ETH, implying that more is destroyed than produced.

Because markets are still in general bear zone, Ethereum demand is likely to rise as more bulls return. As gas prices rise, the burn rate will become more pronounced. As a result, there is more deflation and less supply, which is tremendously bullish in the long run.

Ethereum value settlement is also significantly higher than Bitcoin. According to industry observers, the settlement value for Ethereum this month is nearly ten times that of the Bitcoin network.

During the Monday morning Asian trading session, cryptocurrency markets are still in the green. According to CoinGecko, they have gained 1.7% on the day to reach $1.03 trillion.

Momentum has propelled markets to a ten-week high in the last week. Furthermore, all losses from the crash that followed the FTX collapse in early November have been eliminated.

Ripple (XRP), Polygon (MATIC), Shiba Inu (SHIB), and Near Protocol are also performing well this morning (NEAR).

 

 

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