Billions of Dollars Burned! Will Price Rise Coming?

Billions of Dollars Burned!  Will Price Rise Coming?

Ethereum Since the implementation of the EIP-1559 update on its blockchain, the multi-billion dollar supply of Ethereum tokens has been removed and helped boost the price of the asset as a massive sales volume could no longer reach the market.

The amount of Ethereum tokens burned exceeded 2.6 million, which is worth about $3.7 billion at the current price. If he measures the supply of ETH burned with ATH, the value will be even higher and it can be seen that there is around 12 billion dollars burned.

Billions of Dollars Burned! Will Price Rise Coming?

More importantly, Ethereum’s annual inflation rate has dropped by more than 50%, bringing ETH much closer to being a deflationary asset. As a result, it means that the amount of coins to be released will fall below the burn rate over time.

Ethereum Merge With the update, the total issuance of ETH will decrease by 90%, bringing the inflation of the network to an extremely low level. With issuance decreasing and adoption increasing, it looks like the demand for Ethereum could increase the price of the asset more effectively.

Ethereum burn As we have reported, but it should not be forgotten that the decrease in supply is not the only reason that will directly increase the price. Decentralized applications and solutions are one of the main sources of Ethereum’s growing value, which is the biggest proof that deflation will not change the value of ETH without use cases.

Cryptocurrency The outflow of funds from the market and the blockchain industry in general has resulted in an almost 80% price correction for Ethereum. The major correction was attributed to exits from the DeFi and NFT industries, which are the main sources of revenue for the ETH network.

The low fees on the network are the biggest proof of the lack of network usage. In order to improve this situation, monetary policies in the world need to be relaxed. As a result, the improvement in monetary policies will also experience an improvement in the cryptocurrency market.

You can follow the current price action here.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.

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