By NewsBlogger The Ethereum network has experienced positive activity and supply dynamics following the Dencun hard fork, leading to a decrease in total ETH supply despite potential short-term price correction risks.
At a glance
- The Dencun upgrade aims to reduce transaction fees on Ethereum-based layer-2 networks through proto-danksharding.
- The total supply of ETH has decreased to its lowest level since August 2022 after the successful launch of Dencun.
- Daily transactions on the Ethereum network have surged to levels not seen since May 2023, with over 31.7 million ETH currently staked.
- ETH faces a potential price correction due to being at its most expensive level since December 2021.
- Altcoins that bounced back from the Friday crash include AVAX, BNB, SOL, and APT.
The details
The Ethereum network has seen positive activity and supply dynamics following the launch of the Dencun hard fork.
Despite this, Ether (ETH) faces a potential risk of price correction in the short term, even with positive network activity.
The Dencun upgrade aims to reduce transaction fees on Ethereum-based layer-2 networks through proto-danksharding.
The total supply of ETH has decreased to its lowest level since August 2022 after the successful launch of Dencun, with Ethereum transaction fees being burnt at a high level, leading to a decline in total ETH supply.
Daily transactions on the Ethereum network have surged to levels not seen since May 2023, with over 31.7 million ETH currently staked, representing approximately 26% of the total ETH supply.
Despite positive on-chain metrics, ETH faces a potential price correction due to being at its most expensive level since December 2021. Ether’s MVRV ratio stands at 2.0, indicating that the asset’s value is currently 2 times above its average on-chain purchase price.
ETH recently experienced a more than 6% fall at the end of the working week and was trading at under $3,700 at the time of writing.
On the other hand, Bitcoin (BTC) has fallen from its recent highs to levels not seen in a week, resulting in millions in liquidations.
The Coinbase Bitcoin Premium Index showed a bearish signal prior to BTC’s decline.
This index represents the percentage difference between Binance’s (Tether) USDT pair price and Coinbase Pro’s USD pair price, with a decrease indicating weakened buying pressure from U.S. investors.
Analysts have warned of a potential price correction for BTC as it climbed above $73,000, with historical data suggesting BTC may reach a cycle top in the next three to nine months.
Altcoins that bounced back from the Friday crash include AVAX, BNB, SOL, and APT—Bitcoin’s business week started with price fluctuations, dropping to $67,000 before reaching a new all-time high of approximately $73,000. The cryptocurrency market has seen enhanced volatility, with Bitcoin briefly exceeding its all-time high before experiencing a drop to under $69,000. Despite this, Bitcoin has begun its recovery, trading at just over $69,000 with a market cap of over $1.350 trillion and dominance over altcoins at 49.2%.
Solana’s native token, SOL, has seen an 8% increase and is trading above $190 – the highest price in over two years.
AVAX is at a multi-year high at $60 with a 12% daily surge, BNB has reclaimed $600 with a 5% increase, and Aptos surged by 14% to $15. DOGE and SHIB have declined by just over 3%, while ETH remains at just over $3,700. The total crypto market cap has recovered more than $60 billion in a day and now exceeds $2.760 trillion on CG.
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| cryptopotato.com |
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| – Ethereum network’s activity and supply dynamics have remained positive after the launch of the Dencun hard fork – Ether (ETH) faces a risk of price correction in the short term despite positive network activity – The Dencun upgrade aims to reduce transaction fees on Ethereum-based layer-2 networks through proto-danksharding – Total supply of ETH has decreased to its lowest level since August 2022 after the successful launch of Dencun – Ethereum transaction fees are burnt at a high level, leading to a decline in total ETH supply – Daily transactions on the Ethereum network have surged to levels not seen since May 2023 – Over 31.7 million ETH are currently staked, representing around 26% of the total ETH supply – Despite positive on-chain metrics, ETH faces a risk of price correction due to being at its most expensive level since December 2021 – Ether’s MVRV ratio is at 2.0, indicating the asset’s value is 2x above its average on-chain purchase price – ETH fell by more than 6% at the end of the working week and was trading at under $3,700 at the time of writing |
| cryptopotato.com |
|---|
| – Bitcoin (BTC) has fallen from its recent highs to levels not seen in a week, leading to millions in liquidations. – The Coinbase Bitcoin Premium Index showed a bearish signal before BTC’s decline. |
| – The Coinbase Premium Index represents the percentage difference between Binance’s (Tether) USDT pair price and Coinbase Pro’s USD pair price. – A decrease in the index suggests that professional traders are less bullish than retail traders. – A negative trend in the Coinbase Premium Index typically indicates a short-term correction in a bullish market. – The fall below 0.05 in the premium index indicated weakened buying pressure from U.S. investors. – Analysts warned of a potential price correction for BTC as it climbed above $73,000. – A 20% price correction is deemed necessary for BTC before it reaches new levels. – BTC may lose roughly 6% more of its value in the near future. – Historical data from the Directional Movement Index suggests BTC may reach a cycle top in the next three to nine months. – Bitcoin’s drop on Friday led to over 190,000 traders being liquidated, totaling around $700 million. – The largest wrecked position was over $13 million on the OKX exchange. – Short-term holders’ unrealized profit margins reached high levels during BTC’s rally past $73,000. |
| cryptopotato.com |
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| – Bitcoin’s price faced enhanced volatility at the end of the business week, including a drop of $8,000, but has recovered some losses. – Altcoins that bounced off from the Friday crash include AVAX, BNB, SOL, and APT. – Bitcoin’s business week started with price fluctuations, dumping to $67,000 before reaching a new all-time high of roughly $73,000. – Bitcoin briefly exceeded the all-time high on Tuesday before dropping to under $69,000. – Bitcoin saw another all-time high at almost $74,000 on Thursday before dropping to a weekly low of under $66,000. – Bitcoin began its recovery shortly after, trading at just over $69,000 with a market cap over $1.350 trillion and dominance over alts at 49.2%. – Solana’s native token, SOL, is up by 8% and trades above $190 – the highest price in over two years. – AVAX is at a multi-year high at $60 with a 12% daily surge, BNB has reclaimed $600 with a 5% increase, and Aptos surged by 14% to $15. – DOGE and SHIB have declined by just over 3%, while ETH remains at just over $3,700. – The total crypto market cap has recovered more than $60 billion in a day and is now over $2.760 trillion on CG. |
