In the second quarter of 2024, the Ethereum network saw a total of 107,725 ETH burned, while 228,543 ETH were emitted, resulting in a net addition of 120,818 ETH to the supply, making the network inflationary for the period. The burn rate of ETH dropped significantly, decreasing by 66.7% compared to the previous quarter, primarily due to reduced network activity and lower gas fees.
During Q2, there were only 7 days when ETH burns exceeded emissions, a sharp decline from the 66 days recorded in Q1. This indicates a substantial shift in network dynamics, with fewer days where the burn rate outpaced new ETH emissions.
#Ethereum burn is decreasing, supply increasing pic.twitter.com/nYK48dpeuQ
— Bitcoinik (@Bitcoinikdotcom) July 20, 2024
-----Cryptonews AD----->>>
Sign up for a Bybit account and claim exclusive rewards from the Bybit referral program! Plus, claim up to 6,045 USDT bonus at . https://www.bybit.com/invite?ref=PAR8BE
<<<-----Cryptonews AD-----
Overall this is a bearish sign for the Ethereum market because network inflation, reduced coin burn rate, and other bearish factors are in play simultaneously.
Network Inflation
The net addition of 120,818 ETH to the supply indicates an inflationary trend, meaning more ETH is being created than burned. This increased supply can put downward pressure on prices.
Reduced Burn Rate
A 66.7% drop in the burn rate suggests decreased network activity and lower gas fees. Lower network activity can imply reduced demand for ETH, which is typically bearish.
Few Days of Higher Burns
With only 7 days in Q2 where ETH burns exceeded emissions, compared to 66 days in Q1, the reduced frequency of deflationary days further supports the bearish outlook.
Overall, these factors suggest a less favourable market condition for Ethereum, indicating potential bearish trends.
Ethereum (ETH) price action
The current trade price of ETH coin is $3,520 & this price is 11% high over the last 7 days period.
The Ethereum market may experience significant rallies next week as the American securities regulatory body is set to decide on the approval of Ethereum spot ETF applications.
Read also: Worldcoin Scandal: Price Manipulation Allegations Rock Crypto World
Three Alarming Signs: Ethereum (ETH) Poised for Major Correction
https://bitcoinik.com/three-alarming-signs-ethereum-eth-poised-for-major-correction/feed/
https://bitcoinik.com/three-alarming-signs-ethereum-eth-poised-for-major-correction/feed/
