Ethereum (ETH) Gears Up for Bull Run Amidst Deflationary Phase Feb 5, 2024 Feb 5, 2024 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsFebruary 5, 2024 by Kelly Cromley

Ethereum (ETH) Gears Up for Bull Run Amidst Deflationary Phase

Ethereum (ETH) is becoming a focal point for investors anticipating the upcoming bull run, backed by recent data revealing the network’s deflationary trends. Over the past month, approximately $13 million worth of ETH has been burned, reducing the circulating supply and signaling a deflationary phase for the digital asset.

 

The Ethereum network executed transactions sending 74,933.24 ETH into dead wallets, coinciding with the issuance of 69,313.86 ETH during the same period. This reduction in circulating supply aligns with the characteristics of a deflationary asset, indicating higher demand than supply, ultimately leading to potential price increases.

 

The current scenario also sees around 29.39 million ETH coins staked on the blockchain, representing nearly a quarter of the total circulating supply. This substantial staking activity reflects investor interest and confidence in the network’s health and security.

 

Despite the inherent volatility of the crypto market in the past 30 days, ETH has managed a 3.6% increase. While experiencing a minor dip of less than 1% in the last 24 hours, ETH shows a nearly 2% gain in the last 7 days.

 

Anticipation is building around upcoming developments that could propel ETH into a rally, potentially reaching a new all-time high. A significant contributor to this outlook is the impending DenCun upgrade, with Ethereum developers hinting at a successful testing phase and a likely mainnet launch announcement on February 8.

 

Another aspect closely monitored by the crypto community is the prospect of an Ethereum spot ETF. Speculation varies, with some experts suggesting a potential approval in May, coinciding with application deadlines. Others remain cautious, predicting a lengthier approval timeline of up to two years.

 

Bullish sentiment is further fueled by the Bitcoin halving scheduled for April, historically known for triggering positive market trends. Bitcoin is anticipated to reach a new all-time high exceeding $100,000 by the end of the year, influencing similar expectations for ETH.

 

Ethereum, currently 52% below its all-time high of $4,878.26 set two years ago, is closely watched by investors. While the majority of experts foresee an upward trajectory, crypto analyst Benjamin Cowen has issued a cautionary note, suggesting a potential drop to $1,000 before a rally to a new all-time high based on cyclic patterns.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.