What is it about the largest altcoin that an investor can bet on? Well, the fact that the Ethereum2.0 deposit address on March 10 exceeded the total number of locked ETH, which at the time of writing was 10 million. Despite this, the market trend was not in favor of ETH’s positive price action.
Change your perspective
Ethereum, the main altcoin, has acted as a “source” for several platforms. In 2015, the Ethereum network began its journey by offering 72 million ETH to approximately 10,000 Bitcoin addresses that participated in the ICO. divided to more than 144.7 million registered portfolios.
Despite “brutal redistributive trading,” a large majority of ETH has remained static over the years. Here’s a sign of it: the chart below.
Source: glass node
According to the chart, only 6.5% of the supply was active in the past 5-7 years. And on average only about 0.3% per day. Now it is safe to assume that the circulating supply of ETH was much lower than widely expected.
Other positive factors included the delivery rate of ETH in Smart Contracts and the introduction of EIP-1559. The latter introduced a fee-burning mechanism of the pre-existing ETH into the offering.
It is safe to assume that the circulating supply of ETH is much lower than commonly expected.
Even more with EIP-1559.
EIP-1559 introduced a fee for burning coins of the pre-existing ETH in the offering.
It is on track to burn 3.4 million ETH this year.
That is 2.8% of the total supply. pic.twitter.com/mnoPD9TRjc
— croissant (@CroissantEth) March 10, 2022
In addition, stablecoins consumed a huge chunk of ETH. The king altcoin was often used to borrow stablecoins in DeFi. Probably the reason why stablecoins attracted billions of dollars.
At the time of writing, the total market cap of stablecoins was worth more than $180 billion.
Bullish developments
Ethereum has long been criticized for its high gas fee. Well, it is interesting to note that Ethereum transaction costs have recently fallen to a 6 month low. According to Etherscan.io data, the average cost of transactions on Ethereum at the time of writing was 40 gwei or $2.24.
Ethereum gas rates recently hit levels not seen since last summer ⛽ pic.twitter.com/QS4zVRPNBA
— CoinMetrics.io (we hire people!) (@coinmetrics) March 9, 2022
Unfortunately, at the time of going to press, ETH suffered a correction of 1.20% in 24 hours. It was trading at $2,562 with speculation of further setbacks.
This post Ethereum: Here’s a Long-Term Perspective to Consider Before Taking Positions
was published first on https://ambcrypto.com/ethereum-heres-a-prolonged-perspective-to-be-considered-before-taking-positions/
