The bear has indeed abandoned the world of Ethereum. Not a day goes by without the king of altcoins showing great performances. Yesterday again, ether was trading at $2,060 per piece. Today, the $2,100 mark was crossed. What is really happening? We explain everything to you!
Ethereum, a high burn rate
Besides the awakening of the whaleshaving caused a bullish trend for ether in recent times, we will also agree on a crucial point behind its rise: the increase in combustion rate.
“ The increase in Ethereum’s burn rate is a sign of growing confidence and a rise in its value. »
The article ofAZCoin News attached to this tweet talks about a increase in Ethereum burn rate for October 2024. Fortunately, this did not fail to positively affect the price of ETH. In the world of cryptocurrencies, the more coins we burn, the more value the remaining supply gains.
What motivated these massive burns? CoinTurk News has compiled a small list of factors:
- increase in activities on the blockchain Ethereum;
- increase in the number of transactions (and correspondingly increase in gas fees in ETH);
- use of decentralized applications (dApps);
- ecosystem expansion;
- etc.
Right now, ether is once again in the spotlight. Once again, investors are showing positive sentiment for Ethereum’s native crypto. Some did not fail to secure their portfolios with this asset of real value and utility. Moreover, the infrastructure on which ETH is deployed has a good reputation : it can accommodate a multitude of smart contracts, DeFi and NFT projects.
An Ethereum 2.0 coming soon?
At the moment, the notorious blockchains are competing in inventiveness to become faster and faster, reduce gas costs and also take the first position that we tend to attribute to Ethereum. Polygon, for example, plans to deploy Polygon 2.0 shortly, at the center of which will be decentralization.
At this point, we will not fail to mention the intention of the Ethereum developers toimprove the network at all costs. It may have started with The Merge, Shappella, etc. update series. And we should also not forget the frequent publications of Vitalik Buterin through which he talks about improving the blockchain or the slippage of DAOs. Whether in terms of security or confidentiality.
The more Ethereum improves, the more attractive it becomes to observers.
The icing on the cake is that certain external economic factors have also impacted the evolution of ether. Currently, this cryptocurrency is offered on store of value status. However, it had only been attributed to bitcoin previously.
As it turns out, the bear market has made Ethereum strong and resilient. So, banks see no harm in adding it to their wallets, alongside bitcoin and XRP.
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