Oct 11, 2023: Ethereum’s token supply has seen an increase of approximately 10,000 ETH this week, according to data from Ultrasound.money. This rise has resulted in a 0.43% annual inflation rate, attributed to a lower burn rate of 6,140 ETH and a higher issuance of 16,100 ETH. The uptick comes amidst a broader weakness in the altcoin market and a disappointing performance of Ethereum futures ETFs.
The price of Ethereum continues its downward trend, currently standing at $1,570 with a $9.6 billion 24-hour trading volume. This decline is further fueled by robust selling pressure from large investors and the Ethereum Foundation’s conversion of $2.74 million worth of ETH into USDC via Uniswap V3.
In addition to these developments, Ethereum has registered year-to-date outflows exceeding $100 million, despite recent inflows of about $10 million as reported by CoinShares’ Digital Asset Fund Flows Weekly Report. Crypto analyst Ali Martinez noted consistent selling activity by crypto whales since February, leading to the redistribution or sale of over 5 million ETH with no signs of a trend reversal.
Despite the current conditions, if inflows regain strength, investors could anticipate a price upswing for Ethereum. However, the current market dynamics underscore the volatile nature of cryptocurrency markets and the impact of large-scale investor activity on token value.
Source Courtesy: Investing.com