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Ethereum Hits a Ten-Week High and Turns Deflationary Again

Ethereum Hits a Ten-Week High and Turns Deflationary Again

In the early hours of January 16, Ethereum prices approached $1,600. ETH reached its highest price since November 8 this morning, reaching $1,589 after extending weekend gains. 

At the time of publication, the asset was trading at $1,568 and had gained 3% over the previous 24 hours. In addition, ETH has increased by more than 30% during the past two weeks. Bitcoin, which has gained 27% over the same period and 2.1% on the day, has somewhat underperformed. 

A few months before the Shanghai upgrade, Ethereum is moving more and more in an optimistic direction. This will make it possible to gradually extract staked ETH that has been stored on the Beacon Chain for more than two years.

Ethereum Hits a Ten-Week High and Turns Deflationary Again Forks Daily

The issuance of Ethereum is declining 

Following a disastrous year in 2022, Ethereum’s on-chain fundamentals have also improved this year. The Ultrasound Money Monitoring indicates that ETH issuance has once again entered a deflationary zone. It was said at the time that the current supply growth is -0.09% per year.

Currently, there are about 732,000 ETH burned annually. Around 622,000 ETH are issued each year, which means that more are destroyed than created. 

Demand for Ethereum will probably rise as more bulls come back, as markets are still generally in the bear zone. The impact on the burn rate will increase as gas prices rise. The outcome is a higher deflation rate and a decreasing supply, which are both highly positive long-term trends. 

The value settlement for Ethereum is likewise significantly higher than for Bitcoin. According to industry watchers, the settlement value for Ethereum this month is over ten times higher than that on the Bitcoin network.

Elsewhere in the Crypto Markets

At the beginning of the Monday morning Asian trading session, cryptocurrency markets are still up. According to CoinGecko, they have increased 1.7% on the day to reach $1.03 trillion. 

Markets have reached a ten-week high because of recent momentum. Additionally, all losses from the crash that occurred after the FTX collapsed in early November have been eliminated by this. 

This morning, Ripple (XRP), Polygon (MATIC), Shiba Inu (SHIB), and Near Protocol are some other cryptocurrency assets that are performing nicely (NEAR).

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