The price of Ethereum reached its highest level in the last 10 weeks. In addition, the supply of Ethereum entered the contractionary (anti-inflationary) range again as the demand grew.
According to Valx and quoted by Beincrypto, the price of Ethereum reached $1,600 today (January 16). This number has been unprecedented since November 8.
The price of Ethereum increased by nearly 3% in the last 24 hours and at the time of writing this article is $1,545. The value of this digital asset has grown by more than 30% in the last two weeks. The rate of increase in the price of Ethereum was slightly more than that of Bitcoin, which increased by 27% in the same period.
The upward momentum of the Ethereum price has intensified in the months leading up to the Shanghai update. This upgrade enables the withdrawal of staked ethers in the “Beacon Chain” staking smart contract.
Analysis of Ethereum and its on-chain situation shows a significant improvement compared to 2022. According to data from Ultrasound Money, the supply of Ethereum has re-entered the contraction range. This means that the amount of Ethereum tokens burned is more than the ethers entered into the market. The current inflation rate of the network is around -0.09 percent per year.
| Inflation rate since September 15 | Bitcoin network | Ethereum network |
|---|---|---|
| Dollar price | 2295173556 | -7760 |
The current Ethereum token burn rate is around 732,000 Ether per year. The current annual supply is around 622,000 Ether.
The overall market situation is still bearish, so demand for Ethereum is expected to increase as the bull market returns. This increase in demand will have a direct impact on the burning rate of ether; Because as the cost of network gas increases, more ether will be burned. Therefore, the inflation of this cryptocurrency will become more negative.
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