2023-12-14 14:30:06 by NewsBTC

Ethereum has seen its deflationary status once again in the limelight as the network continues to see a significant decline in the number of ETH tokens in circulation. This comes on the back of the belief that the bull run and some other factors could help uphold this trend.  More ETH Goes Out Of Circulation According to data from Ultrasound Money, Ethereum has seen a decrease in its circulating supply in the last seven days, with over 14,160 ETH going out of circulation. This is a result of over 30,700 being burned during this period while only just over 16,500 ETH have been issued during this same timeframe.  This development continues a growing trend where the number of tokens being burned outpaces the number of tokens being issued. NewsBTC had reported earlier this month how over 106,000 ETH had been burned in the last 30 days (between November 4 and December 4). At the same time, only just over 70,000 ETH had been issued.  This deflationary trend has been attributed to the increasing number of validators exiting the Ethereum ecosystem. This trend is said to have begun at the start of October. Glassnode noted that the average number of validators exiting per day surged from 309 to 1018 validators per day at the start of October.  This isn’t the only contributing factor, as network activity on Ethereum has picked up significantly. According to data from Etherscan, the daily number of transactions on the network has stood over a million in the last seven days. This has caused a spike in gas fees, causing more ETH to be burned with the EIP-1559 protocol.   ETH price rises above $2,200 | Source: ETHUSD on Tradingview.com Ethereum Deflationary Trend Expected To Continue It is no coincidence that network activity on Ethereum has picked up as many continue to position themselves ahead of the imminent bull run, which is projected to kickstart in 2024. The recent surge in the trading volume of non-fungible tokens (NFTs) on Ethereum has also been a big factor. This is expected to continue once the bull market takes its full course.  Another factor to consider is the fact that more liquidity is expected to flow into the Ethereum ecosystem if the pending Ethereum Spot ETFs applications get approved. This would likely spark a further increase in the trading activity on the network as many will look to invest in the second-largest cryptocurrency by market cap.  ETH investors will undoubtedly be delighted at the fact that the future trajectory of ETH looks bullish. One can expect the crypto token’s value to rise as it continues to maintain this deflationary status. The less ETH in circulation, the more valuable it likely will be.  At the time of writing, Ethereum is trading at around $2,270, up by over 4% in the last 24 hours, according to data from CoinMarketCap.  Featured image from Coinpedia, chart from Tradingview.com Scott Matherson Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers. Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life. With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others. Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry. Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors. In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else. Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies. Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society. Disclaimer: The information found on NewsBTC is for educational purposes only. 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