Ethereum price has reached its highest level in ten weeks. Additionally, ETH issuances move back into deflationary territory as the demand for the network increases.
Ethereum price closed the morning of January 16 at $1,600. Continuing on the weekend’s gains, ETH tapped its highest price since November 8th, reaching $1,589 this morning.
The asset has gained 3% over the past 24 hours and was trading at $1,568 as of press time. Furthermore, ETH has gained over 30% in the past fortnight. It has performed slightly better than bitcoin, which is up 27% over the same period, and 2.1% on the day.
Months ahead of the Shanghai upgrade, bullish momentum is building for Ethereum. This will enable a phased withdrawal of ETH held on the Beacon Chain for more than two years.
Declining Ethereum Issuance
Ethereum’s on-chain fundamentals have also strengthened this year after the dreadful 2022. ETH issuance has once again fallen into deflationary territory, according to the Ultrasound money tracker. The current supply growth is -0.09% per year, it was reported at the time.
The Ethereum burn rate is currently around 732,000 ETH per year. The issuance rate is around 622,000 ETH annually, which means that more is being destroyed than produced.
The markets are still in bear territory overall, so demand for Ethereum is likely to increase as more bulls return. As gas prices rise, this will have a major impact on burn rate. The result is a higher deflation rate and a shrinking supply, much faster in the long term.
Ethereum value settlement is also much higher than that of bitcoin. Industry observers have pointed out that the settlement price for Ethereum this month is almost ten times higher than that of the bitcoin network.
Elsewhere in the crypto markets
Crypto markets are still in the green during the Asian trading session on Monday morning. They rose 1.7% on the day to reach $1.03 trillion, according to CoinGecko.
Last week’s momentum has pushed the markets to a ten-week high. Furthermore, it has wiped out all losses from the crash that occurred after the collapse of FTX in early November.
Other crypto assets performing well this morning include Ripple (XRP), Polygon (MATIC), Shiba Inu (SHIB), and Near Protocol (NEAR).
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