Yesterday, the Ethereum blockchain native token, Ether, broke the $3,000 trading zone, and many have stated that with its current price and Bitcoin trading above the $45,000 trading zone, the cryptocurrency market bull run is back.
What you should know
Ether, with a market capitalization of approximately $370 billion makes it the leading altcoin as it is ranked the second-largest cryptocurrency by this metric. It has been leading the altcoin rally, gaining over 20% in the last 7 days.
A major catalyst to the Ethereum bull run this week is the successful integration of the London hard fork upgrade which turned the Ethereum token into a deflationary cryptocurrency. Token Burns, in terms of cryptocurrency, refers to sending an otherwise usable token (or fraction thereof) to an unusable account. The act of burning effectively removes tokens from the available supply, increasing its relative scarcity thereby making the token deflationary.
Since the integration of the upgrade, the Ethereum network has burned 12,670 Ether, which is equivalent to $40.5 million taking Ether’s current market price of $3,200. Ethereum is now burning 3.01 Ether per minute or approximately $9,600 per minute and 4,334 Ether per day or $13.9 million per day.
Data from Cointelegraph Markets Pro and TradingView suggest that the price of Ether (ETH) experienced a “sell the news” sell-off shortly after London went live but dip buyers quickly rushed in and pushed its price back above the $3,000 zone yesterday. This bullish momentum extended further after the price of Bitcoin surged above $45,000 and at the time of writing this report.
According to Ultersound.money, the top project with the most burns is still OpenSea, an NFT marketplace, with 750 ETH or $2.4 million burned so far. A close second is the decentralized finance platform Uniswap V2 which accounts for 540 ETH or $1.73 million burned and in third place we have the fast-rising gaming platform, Axie Infinity, accounting for 430 ETH or $1.38 million burned.
What they are saying
Insight into Ether’s price action was provided by pseudonymous Twitter analyst, Rekt Capital, who highlighted the altcoin’s weekly resistance level as an important hurdle to jump to continue the current uptrend. Rekt Capital said, “Ether is now at one of its final major higher-timeframe resistances. Once Ether can close above $2770 resistance on the weekly timeframe, there will be little resistance ahead until the old All-Time High of $4400.”
With the London Hard fork upgrade, the Ethereum native token is now a deflationary token in which the token in circulation reduces over time. Many traders believe that with this upgrade, Ether is grossly undervalued and are predicting a $10,000 to 1 Ether, once the network fully moves from a Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS) mechanism. Investors are advised to trade cautiously as the cryptocurrency market is very volatile.