Ethereum

Reflect

Burn

Uniswap

Show

The post <a href="https://coinpedia.org/news/ethereum-news-today-is-eth-about-to-explode-with-40-locked-in-smart-contracts/">Ethereum News Today: Is ETH About to Explode with 40% Locked in Smart Contracts?</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a> 
As nearly 40% of Ethereum is now tied up in<a href="https://coinpedia.org/information/smart-contracts-and-provably-fair-gaming/"> smart contracts</a>, its scarcity is becoming more pronounced. However, recent market trends paint a complicated picture for ETH investors. 
Challenges are coming rapidly and uncertainty is growing. What’s next for the token? 
<h2 class="wp-block-heading" id="h-ethereum-s-growing-scarcity-nbsp">Ethereum’s Growing Scarcity&nbsp;</h2> 
With close to 40% of ETH now locked in smart contracts, the supply available for trading is shrinking. This scarcity could lead to significant price changes if demand rises, making Ethereum a cryptocurrency to keep an eye on. In the last 24 hours,<a href="https://markets.coinpedia.org/ethereum/"> Ethereum’s price</a> has risen by about 4.8%, and in the past week, it’s up over 5.5%. 
<figure class="wp-block-image">
 <img decoding="async" width="680" height="383" src="https://image.coinpedia.org/wp-content/uploads/2024/08/13134720/image-26.png" alt="" class="wp-image-338008" srcset="https://image.coinpedia.org/wp-content/uploads/2024/08/13134720/image-26.png 680w, https://image.coinpedia.org/wp-content/uploads/2024/08/13134720/image-26-300x169.png 300w, https://image.coinpedia.org/wp-content/uploads/2024/08/13134720/image-26-390x220.png 390w, https://image.coinpedia.org/wp-content/uploads/2024/08/13134720/image-26-150x84.png 150w" sizes="(max-width: 680px) 100vw, 680px">
</figure> 
<h2 class="wp-block-heading" id="h-beware-of-the-challenges-ahead">Beware of the Challenges Ahead! </h2> 
While the scarcity of Ethereum is promising, several market signals suggest that challenges could lie ahead: 
Burn Rate Decline: The rate at which ETH is burned, or removed from circulation, has dropped to its lowest level ever. This decrease leads to higher net issuance, raising concerns about potential inflation for Ethereum. 
Slow Layer 2 Adoption: The adoption of Layer 2 solutions, designed to improve Ethereum’s scalability, has been slower than expected. This sluggish uptake raises questions about Ethereum’s ability to handle increased demand. 
Stablecoin Transactions Dominate: Ethereum’s main use is shifting towards stablecoin transactions. This reliance on stablecoins might not be sustainable for Ethereum’s long-term growth. 
Declining Uniswap Volume: <a href="https://coinpedia.org/price-prediction/uniswap-uni-price-prediction/" target="_blank" rel="noreferrer noopener">Uniswap</a>, which is one of the major decentralized exchanges on the Ethereum network, is experiencing dwindling volumes. Current activity hovers just above 10% of what was observed in March. What this indicates is reduced trading enthusiasm.&nbsp; 
<figure class="wp-block-image">
 <img decoding="async" width="757" height="465" src="https://image.coinpedia.org/wp-content/uploads/2024/08/13134720/image-27.png" alt="" class="wp-image-338009" srcset="https://image.coinpedia.org/wp-content/uploads/2024/08/13134720/image-27.png 757w, https://image.coinpedia.org/wp-content/uploads/2024/08/13134720/image-27-300x184.png 300w, https://image.coinpedia.org/wp-content/uploads/2024/08/13134720/image-27-150x92.png 150w" sizes="(max-width: 757px) 100vw, 757px">
</figure> 
<h2 class="wp-block-heading" id="h-ethereum-s-price-trends-a-volatile-year">Ethereum’s Price Trends: A Volatile Year</h2> 
The current price of Ethereum is $2,648.2, marking a decline from $3,188.5 at the beginning of August 2024. This drop is part of a broader trend, with a significant decrease observed between July 29th and August 7th, when the price fell from $3,314.4 to $2,333.3. Earlier in the year, ETH began at around $2,349.5, experiencing a sharp rise between January 25th and March 11th, peaking at $4,069.5. The price then entered a sideways market, stabilising between $3,669.4 and $3,888.8 from May 20th to June 10th.&nbsp; 
<figure class="wp-block-image">
 <img decoding="async" width="1600" height="900" src="https://image.coinpedia.org/wp-content/uploads/2024/08/13134721/image-37.png" alt="" class="wp-image-338010" srcset="https://image.coinpedia.org/wp-content/uploads/2024/08/13134721/image-37.png 1600w, https://image.coinpedia.org/wp-content/uploads/2024/08/13134721/image-37-300x169.png 300w, https://image.coinpedia.org/wp-content/uploads/2024/08/13134721/image-37-1024x576.png 1024w, https://image.coinpedia.org/wp-content/uploads/2024/08/13134721/image-37-768x432.png 768w, https://image.coinpedia.org/wp-content/uploads/2024/08/13134721/image-37-1536x864.png 1536w, https://image.coinpedia.org/wp-content/uploads/2024/08/13134721/image-37-390x220.png 390w, https://image.coinpedia.org/wp-content/uploads/2024/08/13134721/image-37-150x84.png 150w" sizes="(max-width: 1600px) 100vw, 1600px">
</figure> 
<a href="https://coinpedia.org/price-prediction/market-price-prediction-ethereum-2019/">Ethereum’s journey in 2024</a> is marked by both scarcity-driven potential and market challenges. The crypto community will be closely watching how these factors play out, as they will shape Ethereum’s future in the months to come. 
Also Check Out: <a href="https://coinpedia.org/price-analysis/markets-could-remain-highly-volatile-here-are-the-cryptos-to-monitor-this-week/" target="_blank" rel="noreferrer noopener">Markets Could Remain Highly Volatile: Here are the Cryptos to Monitor This Week</a> 
As Ethereum’s story unfolds, it’s crucial to stay informed. Stay tuned to Coinpedia.

Ethereum News Today: Is ETH About to Explode with 40% Locked in Smart Contracts?

Table of Contents

CoinPedia News

Other articles published on Aug 13, 2024

The Viral Cryptos Exploding This Week: PONZIO and POODL

Solana Meme Coin Launchpad Pump.fun Reaches Record Monthly Agreement Income

Bitcoin at ‘perfect’ macro setup, but dip below $58K risks $500M in liquidations

SEC Pushes Back Against Coinbase’s Demand for Gensler Emails on Digital Assets

Pawfury (PAW) Surpasses 8,000 Holders, Community Grows Rapidly (13 Aug)

New Solana Memecoin Trump Rides Doge to Rally Over 16,000% Before Exchange Listings, While SHIB a...

Join our free newsletter for daily crypto updates!