Ethereum Staking and Burning Metrics Solid But Bearish Price Prediction Still Looms

Please fol­low and like us:
Pin Share

Sev­er­al met­rics for the Ethereum net­work remain bull­ish but that hasn’t been reflect­ed in the price which could fall fur­ther in the short term.

The Ethereum net­work is still show­ing sol­id met­rics in terms of stak­ing and activ­i­ty, how­ev­er, prices con­tin­ue to erode as the cryp­to win­ter lengthens.

With more than 14 mil­lion ETH staked and 439,425 active val­ida­tors, the Ethereum net­work is look­ing pret­ty healthy at the moment. At cur­rent prices, that works out as a lit­tle over $18 bil­lion rep­re­sent­ing 11.6% of the entire sup­ply of ETH.

Stak­ers are being reward­ed with a cur­rent annu­al inter­est rate of rough­ly 4% which beats any­thing offered by most high street banks. The ETH locked on the Bea­con Chain is still immo­bile and will not be acces­si­ble for a few months when it is like­ly to be released in stages.

Solid Ethereum network stats

Since the Merge on Sept. 15, the total sup­ply has increased by just 0.18%, adding just 10,500 ETH to the cir­cu­la­tion. Under peri­ods of heavy demand and net­work activ­i­ty, the issuance will become neg­a­tive as more ETH is being burnt by the EIP-1559 process.

The Ultrasound.Money plat­form pre­dicts that the sup­ply of Ethereum will start to decrease from now on, drop­ping by around 3.5% to 116 mil­lion over the next two years.

There is cur­rent­ly around 550 ETH being burnt per day worth approx­i­mate­ly $710,000 at cur­rent prices. NFT plat­form OpenSea has been the biggest gas guz­zler fol­lowed by Uniswap. Gas prices are cur­rent­ly very low at $0.07 per trans­ac­tion on average.

On Oct. 3, Mes­sari report­ed that aver­age Ethereum NFT dai­ly trad­ing vol­umes dropped dra­mat­i­cal­ly dur­ing Q3. How­ev­er, it observed that the aver­age num­ber of dai­ly traders wit­nessed a much small­er decline, adding that “this indi­cates a sticky base of com­mit­ted users at around 40,000 per day.”

There are cur­rent­ly 1.2 mil­lion dai­ly trans­ac­tions on the Ethereum net­work main­tain­ing steady activ­i­ty lev­els over the past year or two which sug­gests that demand is not wan­ing along with prices. 

Prices could fall further

Unfor­tu­nate­ly for investors, none of these bull­ish sta­tis­tics have been reflect­ed in recent price action. ETH is cur­rent­ly trad­ing at $1,289 after falling 1.7% on the day. The asset is now down 18% over the past month and 74% since its Novem­ber all-time high.

Some ana­lysts are pre­dict­ing fur­ther loss­es and a poten­tial fall to the low $1,000 area since it has been unable to over­come resis­tance at high­er levels.

Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *