From Investing.com:

The Ethereum network has entered a deflationary phase, resulting in $13 million worth of Ethereum being destroyed over the past 30 days. This is due to the network’s burning mechanism, which has incinerated 74,933.24 ETH, surpassing the 69,313.86 ETH issued. This deflationary pressure could signal an approaching rally for Ethereum, potentially increasing the value per token.

The implications of Ethereum’s deflationary trend could lead to an increase in value per token, assuming demand stays the same or grows. The current market traction for Ethereum is relatively muted, despite the deflationary state of supply. The lack of significant network activity or groundbreaking updates has kept the token from gaining substantial momentum. The market awaits a catalyst that could reignite Ethereum’s dominance in the blockchain space.

Analyzing the Ethereum chart, a crucial factor is the potential breakthrough of the 50-day Exponential Moving Average, which could confirm a shift in market sentiment. However, without an accompanying increase in demand or network utility, the impact on price may be limited. The reduction in supply is a positive sign, but the market awaits a catalyst for Ethereum’s dominance in the blockchain space.



Read more: $13 Milion in Ethereum (ETH) Destroyed as Supply Becomes Deflationary Again By U.Today