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Friday, July 1, 2022

Ethereum Hits A Price Of $3K

While the amount of Ethereum that was held by cryptocurrency exchanges all over went down, the price of the coin went above $3,000. This took place on the 23rd of September. Also, this was supported by the data brought by CryptoQuant, which is a platform dealing with blockchain analytics, which has shown that the net exchanges of Ether token reserves went down to 18.533 million ETH, which can be compared to a sum of 23.92 million ETH just a year ago.

At the same time, the cost to buy a single token of the cryptocurrency went from a minute sum of $349 to a sum of $3,078- which does highlight an inverse correlation between the reserves of the token on prices and exchanges. 

The supply-demand factor of Ethereum

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The lower reserves of exchanges do hint at the likelihood of traders holding the underlying Ethereum tokens rather than trading them for other assets of a digital nature. Hence, if the demand for cryptocurrency starts increasing, the very lack of an adequate supply would definitely help in boosting prices.

Currently, it does appear that the native token of Ether has moved in seamlessly through the low supply-high demand bullish model. For example, Dapp Radar did report that the total value locked throughout the decentralized applications industry reached an impeccable $142 billion- of which around 68% was set on the network of Ether. 

On another hand, quite a few Ethereum tokens have started moving out of active supply after the cryptocurrency announced the feature of staking last year- as the network moved in to become an insignia of a full-fledged proof-of-stake blockchain by next year. 

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Interestingly, another upgrade on the network on the 5th of August- which has been dubbed the London Hard Fork, went on to add a feature that would help trim the pace at which Ethereum grows. This change has already gone on to split almost 13,000 new ETH produced every single day.

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