As Ethereum [ETH] continues to burn, what should HODLers do?
- The amount of ETH burned over the last 24 hours increased materially.
- Retail interest in ETH surged. Validators on the network grew, as mean fees spiked.
As per a 5 May report from Delphi Digital, a staggering sum of 10,000 Ethereum [ETH] was burnt in the last 24 hours.
10,000 $ETH has been burned over the past 24 hours. 🔥 pic.twitter.com/E8Dmf784Tm
— Delphi Digital (@Delphi_Digital) May 5, 2023
Read Ethereum’s [ETH] Price Prediction 2023-2024
ETH: Burnin up
ETH is typically burned through a process known as “token burning.” In this process, a certain amount of ETH is sent to an address that no one has access to or can control, also known as a “burn address.”
These burnt tokens are then removed from circulation permanently, reducing the total supply of ETH. The most common reasons for burning tokens include reducing inflation, increasing scarcity, and increasing the value of the remaining tokens. The reduction in ETH supply through burning can also lead to a decrease in Ethereum’s inflation rate, which can be beneficial for long-term holders and investors.
10,000 $ETH has been burned over the past 24 hours. 🔥 pic.twitter.com/E8Dmf784Tm
— Delphi Digital (@Delphi_Digital) May 5, 2023
Aside from the high ETH burning rate, there are other factors as well that favored ETH at press time. According to Glassnode’s data, retail interest in Ethereum surged. This was showcased by the increasing number of addresses holding more than 0.1 ETH.
📈 #Ethereum $ETH Number of Addresses Holding 0.1+ Coins just reached a 4-month high of 5,194,526
View metric:https://t.co/rW81qhwy4d pic.twitter.com/tXV1juUCl1
— glassnode alerts (@glassnodealerts) May 6, 2023
Additionally, the number of transfers being made on the Ethereum network also surged. Due to this, the mean gas paid off to Ethereum validators reached an 11-month high.
Source: glassnode
Because of the high fees paid to the validators, the interest from them grew. Glassnode’s data illustrated that the overall number of validators increased from 572,635 to 645,192 over the last month.
Source: glassnode
New developments
In terms of development, Ethereum developers discussed additional changes that could be made to the network on the All-Core Developers Consensus Call.
Is your portfolio green? Check out the Ethereum Profit Calculator
The developers talked about some Ethereum Improvement Proposals (EIPs) to make Ethereum better. They discussed three proposals: EIP 4788, which would make it easier to connect different parts of Ethereum, EIP 6987, which would prevent from proposing blocks, and EIP 6475, which would create a new way to represent values.
The developers agreed to consider EIP 4788 and EIP 6987 for a future upgrade called Deneb.
