As a seasoned crypto investor with a decade of experience under my belt, I have seen the crypto market go through its fair share of ups and downs. The latest report by CoinGecko detailing Ethereum (ETH) burns since the start of 2024 has caught my attention. While the monthly burn rate has been fluctuating throughout the year, it’s encouraging to see that a total of 465,657 ETH have been burned since January, adding to the 3.9 million ETH burned since EIP-1559 was implemented in June 2021.
A CoinGecko report published recently showcases the Ethereum (ETH) burn rate from January 2024 up until August 5th. The data indicates that the Ethereum network has destroyed approximately 465,657 ETH this year alone. Since the introduction of EIP-1559 in June 2021, a total of 4.36 million ETH have been burned.
In March 2024, the monthly Ethereum burn reached a record 147,620 ETH for that year, but this figure was significantly lower compared to the all-time high of 398,061 ETH burned in January 2022.
In July 2024, the least amount of ETH was burned in a month during that year, with 17,114 ETH being destroyed. This represents a 35.0% decrease compared to June. On the contrary, a record-breaking 147,620 ETH were burned in March 2024, marking the highest monthly total for that year.
As an analyst, I’d rephrase that as follows: In the second quarter of 2024, Ethereum (ETH) burn rate decreased by approximately 67.7% compared to the first quarter, with a total of 107,725 ETH being burned during this period. To put it into perspective, four times as many ETH were burned in Q1, amounting to 333,555 ETH.
2024 saw Uniswap as the leading Ethereum incinerator, obliterating a total of 71,915 Ether. Meanwhile, Ether transfers came in second place as the biggest contributors to Ether burns this year, having burned 33,538 Ether thus far. Tether (USDT) followed closely in third position, burning 23,332 Ether. Lastly, Banana Gun (BANANA) emerged as the fourth-largest burn contributor, eliminating a total of 11,060 Ether.
ETH reversal might be on horizon
Regarding Ethereum, the second-largest digital currency in terms of market capitalization, there’s been a significant drop in price recently, leading some investors to wonder if this downward trend will persist. Nevertheless, data from the futures market hints at a potential reversal, as suggested by a recent study conducted by CryptoQuant.
The recent fall in Ethereum prices has led to an increase in forced closures of positions (long liquidations), a phenomenon not witnessed since last November 2022. This substantial clearing out indicates a potential slowdown in the futures market, as numerous highly leveraged trades have been closed.
As a researcher exploring the intricacies of the cryptocurrency market, I can’t help but envision a scenario that could rekindle enthusiasm for the futures market. Should this hypothetical reset occur, and demand resumes its upward trajectory, Ethereum might find itself in an advantageous position, poised for a significant price surge in the long run.
The potential decrease in temperature within the future market could lure fresh investors and help maintain market balance, hinting at a potential recovery following the recent drop in prices.
At the time of writing, ETH was up 2.4% in the last 24 hours to $2,695 and up 12% weekly.
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2024-08-12 18:27