ETH is waiting for a rocket rise – these factors prove it
2 min read
According to an analysis by Altcoin Daily, ETH will seize opportunities in the near future and start a rocket rise.
A strong fundamental basis for ETH
The popular Altcoin Daily came up with a very interesting prediction for the second largest cryptocurrency. According to moderator Aaron Arnold, ETH is ready for a massive rise based on strong fundamentals. But what are the reasons for this positive idea?
It seems that London’s hard fork can be considered more than successful. Since the start of the protocol EIP-1559 ETH is experiencing a significant supply shock. What’s behind that? It is simple. For each processed transaction, a certain amount of ETH is permanently removed from the offer.
“ETH has completely changed its monetary policy. An insane amount of ETH was burned. More than 100,000 ETHs have been burned thanks to NFT, DEX, DeFi, play-to-ear games and, last but not least, stablecoin. ”
At the time of writing, more than 125 923 ETH.
Low inflation
ETH has a really positive start to the bullish wave. Another feature is the ever-decreasing inflation rate.
We informed you about this factor in our previous article, which you can read here: ETH inflation has fallen below BTC for the first time.
“For the first time, daily ETH emissions were lower than for BTC. So what does that mean? Net ETH inflation was 1.1% in one year, while net annual BTC inflation was 1.75%.
ETH locked capital
The total blocked ETH value in decentralized platforms puts the second largest cryptomene in an interesting position. According to Aaron Arnold, the locked ETH value is able to compete with the world’s largest banks.
“Since the beginning of the year, the total locked ETH value in DeFi has increased exponentially. At the beginning of the year, it was only $ 16 billion. Today, we are witnessing that value has risen to an incredible $ 85 billion. In that case, ETH could be ranked 20th in the world’s largest banks by market capitalization. “
Finally, it should be added that almost a quarter of the total ETH offer is locked in smart contracts. So these tokens cannot be sold because they are used for useful projects.
