We’ve been talking for some time about the possibility that – after the London Upgrade – ETH it could have become deflationary. The possibility first materialized today – for a straight week.
This – as we will see before – driven by the great success of several meme token they use their own ETH as the underlying blockchain – but not only. Because even the big price growth ETH it has helped to create a very tempting situation for all those involved.
Burning at full speed: over 6 billion dollars already burned
Burning – which was introduced with the London fork – is proceeding at full speed. As is known to those who follow Crypteory, for some time now a part of the transaction fees has been burned, or technically removed from circulation.
This carries the basis of ETH available to compress, with the news that for the whole of last week ETH more were burned than those created through mining. Something that few would have expected when the system was introduced burning and that is mainly due to the great success of Shiba Token, which was the smart contract that saw the highest trading volumes throughout the past week.
With the boom of the meme par excellence, transactions have increased, with a greater part ending up in the virtual oven that continues to burn ETH at a fast pace. At the time of writing, we are at around 15,000 ETH burned every day. ETH than in the absence of London Fork would remain in circulation. A basic familiarity with the supply and demand curves is enough to realize what news bullish be this for the future price of ETH.
Once the short-term targets have been exceeded, where can ETH reach by the end of the year?
The question is certainly complex, given that ETH has blown short-term forecasts, getting closer to what we, too, who were optimistic, had forecast for the end of the year.
In all likelihood, by the end of the year it will also be possible to easily aim for medium-term target, before the end of the year. However, developments towards ETH 2.0, which although some minor problems are having. Problems to which developers swear they have solutions – with markets that – at least for now – have no reason not to believe what has been said.
The one of ETH is and will remain an incredible success story of a altcoin which is also withstanding the onslaught of the layer 2 born precisely to overcome problems of commissions and speed of execution of transactions. And that even, as indicated by Vitalik Buterin they could be a strength and not a weakness for the network.