Ethereum

The post <a href="https://coinpedia.org/news/ethereum-burns-2-5b-worth-of-eth-since-merge-will-this-influence-the-price-of-it/">Ethereum Supply Shrinks by $2.58B Post-Merge: What’s the Price Impact?</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a> 
In a financial twist, <a href="https://coinpedia.org/information/market-price-prediction-ethereum-2019/">Ethereum</a> has torched a staggering $2.5 billion worth of ETH since its merge in September 2022, steering the cryptocurrency into a deflationary course and triggering a remarkable dip in its supply to an 18-month low. 
This article delves into the implications of this strategic move and explores how it aligns with Ethereum’s evolving narrative. 
<h2 class="wp-block-heading" id="h-ethereum-s-economic-shift">Ethereum’s Economic Shift </h2> 
<a href="https://ultrasound.money/">Ultrasound Money’s</a> careful analysis of Ethereum’s recent financial data has uncovered a significant downturn in the cryptocurrency’s supply. This decline, amounting to 309,663 ETH valued at approximately $686.2 million, marks a departure from its traditional inflationary trends, paving the way for potential enhancements to ETH’s scarcity and value over time. 
Unlike the consistent creation of new ETH, Ethereum’s supply has been deflationary, setting the stage for a potential enhancement of ETH’s scarcity and value over time. 
Also Read: <a href="https://coinpedia.org/price-analysis/ethereum-price-continues-bleeding-can-eth-price-still-achieve-a-new-high-this-year/">Ethereum Price Continues Bleeding! Can ETH Price Still Achieve A New High This Year?</a> 
The Art of Token Elimination 
At the heart of this transformation lies the burning of 1,195,238 ETH, worth around $2.65 billion. This strategic move involves the permanent removal of tokens from circulation, a process that plays a pivotal role in reducing the total supply. What’s intriguing is that, despite the issuance of 885,581 ETH (approximately $1.96 billion), Ethereum’s total supply has experienced a net decrease. 
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Though Ethereum’s total supply has hit its lowest point since the merger, standing at 120,211,380 ETH, its market capitalization remains robust at approximately $266.39 billion, solidifying Ethereum’s formidable position within the crypto market. 
<h2 class="wp-block-heading" id="h-understanding-ethereum-s-strategy">Understanding Ethereum’s Strategy </h2> 
An in-depth analysis of the ETH burning leaderboard unveils the leading contracts fueling this impactful ETH burn. Major decentralized applications (dApps) and services, such as Uniswap, Tether, and OpenSea, emerge as significant contributors to this deflationary strategy. 
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Uniswap, in particular, boasts a soaring transaction volume within the decentralized finance (DeFi) sector, torching an impressive $543.8 million across four contracts in the top 10. The cumulative value of ETH burned by these top 10 contracts tallies a staggering $1,039,762,113.68, underscoring the substantial impact of these strategic burns. 
<h2 class="wp-block-heading" id="h-blackrock-amp-ethereum-the-impact">BlackRock &amp; Ethereum: The Impact </h2> 
Amidst Ethereum’s transformative burn, another potential game-changer is on the horizon. Financial behemoth BlackRock, managing an eye-watering $8.5 trillion in assets, is maneuvering to secure approval for a <a href="https://coinpedia.org/news/grayscales-ethereum-futures-trust-secs-decision-postponed-to-january-2024/">spot Ethereum exchange-traded fund (ETF)</a>. This strategic move could offer institutional investors an unprecedented gateway into the crypto market, especially Ethereum, renowned for powering applications beyond Bitcoin. 
Also Read: <a href="https://coinpedia.org/news/blackrock-officially-files-the-s-1-application-for-its-spot-ethereum-etf/">BlackRock Officially Files the S-1 Application for its Spot Ethereum ETF</a> 
Already triggering price surges with its interest in crypto, <a href="https://coinpedia.org/news/blackrock-officially-files-the-s-1-application-for-its-spot-ethereum-etf/">BlackRock’s proposed ETF </a>approval could inject new dynamics into Ethereum’s current price hovering around $2,190. The financial giant envisions a bullish trajectory for Ethereum, predicting a minimum price of $3,100 in 2024 and a maximum of $8,000 by 2026, adding an extra layer of intrigue to Ethereum’s evolving narrative.

Ethereum Supply Shrinks by $2.58B Post-Merge: What’s the Price Impact?

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