This was not exactly what was expected with the PoS transition, but after the last major update, this risk has increased. Finally, what was feared happened and the supply graph, which is demoralizing for Ether investors, is moving north. This is not good for ETH in the long run. So why is the situation bad?
Ethereum (ETH) Supply
The largest altcoin among cryptocurrencies Ether and with the burning mechanism, thanks to the PoS transition, the supply was expected to shrink even more and the price to increase. This did not happen. With the constantly shrinking supply, the story of demand now pushing the spot price to new heights ended early. The circulating supply has been increasing steadily since April 14. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
The increase in the supply in circulation is an obstacle to the increase in the unit price. The increase in the supply in circulation + together with the new demand necessitates the price to increase. At the same time, the increase on the supply side also indicates a weakening in the network activity. The user activity on the network was around 611 thousand on June 22, but it has recently decreased by 37 percent.
Daily transactions on the Ethereum network also fell by 15 percent, from 1.3 million on June 22. As network activity weakened, the amount of burning also decreased, and as the supply in circulation remained above the burning, the circulating supply increased. Thus, Ethereum’s deflationary cryptocurrency story ended.
ETF and deflationary structure were the basis of beautiful dreams last year. Under current conditions, $172 million worth of ETH has entered circulation in 30 days. ETH must generate constant demand. Current supply is 120.3 million, easily reaching the 2024 high.
ETH Price Prediction
After ETF approval ETH Despite weeks passing, it has not been able to show the expected performance. Moreover, the constantly increasing supply shows that more investors’ risk appetite is needed. The price at $ 2,720 has fallen by 15 percent in the last 30 days. Although RSI and buying/selling demand indicate a balance for now, the fluctuations on the BTC front will be decisive in the direction.
On the possible rise ETH price It may reach $2,867. $2,535 will be targeted in the decline. Although the total volume increased by 10 percent compared to yesterday, it is at $60 billion and looks weak for an uptrend.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
