Ethereum

Status

The post <a href="https://coinpedia.org/news/cryptoquant-report-dencun-upgrade-shatters-ethereums-ultra-sound-money-status/">CryptoQuant Report: Dencun Upgrade Shatters Ethereum’s ‘Ultra-Sound Money’ Status</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a> 
Crypto analytics firm CryptoQuant’s latest report casts doubt on Ethereum’s status as “ultra-sound money” after the implementation of the <a href="https://coinpedia.org/news/dencun-upgrade-goes-live-on-ethereum-mainnet-gas-fees-slashed/" target="_blank" rel="noreferrer noopener">Dencun Upgrade in mid-March</a>. This upgrade, designed to reduce fees and enhance network scalability has accidentally made Ethereum a more inflationary asset. 
However, Analysts note a slowdown in the rate of ETH burning, will cause the Ethereum price to fall near by $2500. 
<h2 class="wp-block-heading" id="h-backfiring-dencun-upgrade">Backfiring Dencun Upgrade</h2> 
The CryptoQuant report <a href="https://cryptoquant.com/community/dashboard/663b98328403fa3034f40749" target="_blank" rel="noreferrer noopener nofollow">highlights that the Dencun upgrade</a> has significantly reduced transaction fees on Ethereum, making them approximately 4x lower on average compared to pre-upgrade levels, resulting in less ETH being burned.&nbsp; 
Meanwhile, this has caused Ethereum’s supply to increase rapidly, contrary to expectations of deflation post the 2022 Merge. Following the merger in 2022, Ether experienced deflation, with the total supply decreasing from 120.491 million to 120.097 million by September 2022.&nbsp; 
CryptoQuant’s report highlights a 400,000 token increase in ETH supply since April, indicating a departure from the deflationary path. 
<h2 class="wp-block-heading" id="h-eth-price-correction-ahead-2500">ETH Price Correction Ahead: $2500</h2> 
In parallel, the impact of Dencun on Ethereum’s price and market sentiment has been significant. Shin Forex, a prominent <a href="https://www.tradingview.com/chart/ETHUSD/v0Pzoxlr-Why-will-Ethereum-drop-toward-2500-level/" target="_blank" rel="noreferrer noopener nofollow">crypto analyst highlights</a> that the break below the critical support level of 0.05 in the ETH/BTC pair has historically introduced substantial price corrections in Ethereum. 
While, analysts highlighted the implications of this breakdown, predicting further declines to around $2,500 if Ethereum’s price falls below 0.04 BTC.&nbsp; 
Presently, bearish sentiment prevails in the <a href="https://markets.coinpedia.org/ethereum/">Ethereum</a> market, with the price hovering around $3,025. This reflects a modest 0.76% increase over the last 24 hours amidst ongoing market fluctuations. 
Also Check Out : <a href="https://coinpedia.org/news/cryptoquant-report-identifies-absence-of-whales-in-bitcoin-uptrend-cycle/">CryptoQuant Report Identifies Absence of Whales in Bitcoin Uptrend Cycle</a>

CryptoQuant Report: Dencun Upgrade Shatters Ethereum’s ‘Ultra-Sound Money’ Status

Съдържание

CoinPedia News

Други статии, публикувани на 10.05.2024 г.

Coinbase Launches Political Action Committee for Crypto-Friendly Election Candidates

Solana NFTs: Traders surge 111%, but sales are down – Why?

Bitcoin’s roadmap to $75K – Why this pattern is critical for BTC’s price

Tether slams Deutsche Bank report questioning USDT stability and solvency

Bitcoin Faces Potential Summer Decline, Analyst Warns

Shiba Doge Hybrid (SHIDOGE) to Surge 8,000% as MEXC Listing Announced, While Shiba Inu and Dogeco...

Присъединете се към нашия безплатен бюлетин за ежедневни крипто актуализации!