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Ethereum (ETH) reinforces its deflationary nature – 143K tokens burned in May

on May 31, 2023
  • Ethereum blockchain destroyed coins worth around $275M this month.
  • Could Ethereum be the new market mover?
  • Reports indicated increased volatility in Ether this year, despite a slow 2023 start.

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Ethereum (ETH) continues to cement its deflationary stance. Data from ultrasound.money shows the blockchain burnt approximately 143,000 Ether coins (worth approximately $275 million) in May. Could Ethereum be the new market driver that experts are searching for?

Source – ultrasound-money

Ethereum saw a 1.46% negative supply growth over the past year. That shows the 2nd-largest crypto is deep into its deflationary phase. Furthermore, the tracker predicts the network will burn around 2,441,000 tokens in 2023 – worth around $4.5 billion.

Ethereum–Bitcoin correlation weakens

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Meanwhile, the Ethereum and Bitcoin correlation continue to deteriorate due to Ether’s deflationary nature. The leading cryptos have seen their positive correlation weakening in 2023.

That indicates a potential lasting market change, with Ethereum and Bitcoin operating more independently because of different supply & demand economics.

CryptoQuant data show enthusiasts have staked over 13% of Ethereum’s total supply. That saw the Ethereum balance touching all-time lows on cryptocurrency exchanges, according to invezz.com news.

Could Ethereum be the next crypto market mover?

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Ethereum will likely end May flat, down around 0.2% over the past 30 days. Also, Ether lost approximately 7% against Bitcoin. Meanwhile, Bitcoin will record its first month of losses since December 2022.

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The bellwether crypto’s struggle likely stemmed from the amplified chances of the Federal Reserve maintaining high rates – strengthening the dollar while weakening the cryptocurrency market.

Such developments had market analysts predicting that the market requires a new drive to catalyze upsurges. Ethereum seems to fit that position.

Burning crypto tokens makes the asset scarce, translating to reduced supply. That triggers upward price actions. Nonetheless, time will reveal everything. Following the latest crypto news remains essential to determine the market’s direction.

Ethereum price

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Ethereum price has presented attractive action over the past seven days. The second-largest digital coin gained around 2.59% within the previous week, changing hands near $1,867.49 during this writing. The altcoin seems to have what it takes to record upside price actions in the upcoming sessions.

Source – invezz.com

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