Ethereum Pushes Price Closer to $2K
Shrinking Ethereum Supply Pushes ETH Price Closer to $2K!
The Ethereum network has removed nearly 70,000 ETH from circulation since the Merge.
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Ethereum Pushes Price Closer to $2K!
The Ethereum network has removed nearly 70,000 ETH from circulation since the Merge.
The shrinking supply of ETH is one of the forces behind the crypto’s current price rally.#Ethereum #ETH pic.twitter.com/u5pMLzQbjT
— The_Journalbiz (@the_journalbiz) April 5, 2023
Bloomberg yearly chart on ETH
Shrinking the Ethereum supply has reduced the selling pressure on ETH.
The shrinking supply of ETH is one of the forces behind the crypto’s current price rally.
Available reports show that the Ethereum network has removed nearly 70,000 ETH from circulation since the last major update, the Merge.
That update saw Ethereum transition from a Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS) algorithm. This development has reduced the selling pressure on ETH, the second-largest cryptocurrency by market capitalization.
In the crypto industry, reducing the number of circulating tokens is considered a bullish signal for any asset. It is an idea consistent with the economic principle of demand and supply, where a reduction in supply creates scarcity, which by extension, results in an increase in the demand and value of an asset.
The analyst expressed confidence in the continued bullish trend, noting his belief that ETH would reach $2,000 soon.
The Binance FUD resulted from a bug that affected one of its engines, leading to the suspension of some critical services.
Ethereum traded at $1,814 at the time of writing, having gained 5.14% in the last 24 hours.
