Why ETH Investors May Have Tough Days Despite These Promising Updates

  • The total annual issuance rate of ETH has decreased significantly
  • Trading also declined, which contributed to the deflationary nature of Ethereum

There was a lot of speculation about what was to come Ethereum [ETH] after merging. One of the doubts most people had was about the deflationary nature of ETH. On the other hand, some clarity appeared on that front, reportedly official sourcesETH has achieved a total annual issuance rate of close to zero.

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Read Ethereum [ETH] price prediction 2023-24

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Last year, the Ethereum developers pushed for the upgrade in London that enabled the burning of Ethereum. The low issuance rate, combined with the burning of Ethereum, contributed to its deflationary nature and painted a positive picture for the future of Ethereum.

Shrinkage properties are improved

According to Messari data, the supply of ETH has decreased significantly in recent days. This further supported its contractionary properties.

Interestingly, while supply continued to decline, the number of Ethereum addresses with more than 10 coins reached ATH 326,899. This development was positive, showing investor confidence in ETH.

In theory, everything seems to be working for ETH. However, these new updates do not seem to affect the price of ETH, which has fallen by more than 21% in the past week. At the time of publication, ETH . was trade to $1,259.72 with a market capitalization of over $153.5 billion.

wait! This could be worrying for ETH

The king of altcoin metrics has hinted that things could get worse for ETH. This was due to the possibility of a further drop in prices in the coming days. according to CryptoQuantNet deposits on the exchanges were higher compared to the seven-day average, which was a negative sign as it indicated higher selling pressure.

EthereumThe number of active addresses decreased. This indicates fewer users on the network. The total number of transactions also followed a similar path, which was another downside signal. The Santiment chart also complemented the above metrics. Although ETH’s market capitalization to Realized Value (MVRV) has risen over the past week, it’s still not enough. ETHThe outflow from the exchange also registered a rise, which was also a bearish signal.

Source: feeling

Regardless, it wasn’t all against Ethereum, as some metrics pointed towards a trend reversal. for example, ETHs foreign exchange reserves decreased. This was a positive sign of lower selling pressure.

In addition, the growth of the ETH network has recorded a significant increase in recent days, which indicates the possibility of better days in the near future.

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