In recent times, both the burn rate and the overall supply issuance on Ethereum have been experiencing some real and serious problems. This is despite the fact that the cryptocurrency market has been relatively stagnant in spite of all the recent events that have taken place.
As investors hold fewer ETH in their wallets, the market value of the asset is experiencing less of a negative impact from the selling pressure. However, the operation of the entire system is contingent on there being a sufficient amount of network activity to produce sufficient fuel for combustion, hence reducing the quantity of fuel already available on the market.
Sadly, researchers and industry professionals have not anticipated the probability of a significant reduction in activity by the end of 2022. After all that happened in the industry this year, the majority of investors exited the market, leaving it to be traded by ordinary investors who are unable to create a sufficient activity for Ethereum burning machines to operate with.
However, despite the fact that there is an excess of supply, the issue with burning is not the only factor contributing to Ethereum’s poor price performance. The largest alternative coin has been experiencing a lot of difficulties.
In a related development, the cryptocurrency exchange Paxful has decided to delist Ethereum due to what its co-founder, Ray Youssef, deems to be an insufficient degree of decentralization brought about by the shift of the leading smart contract platform to proof-of-stake. Youssef asserts that investors would be better off if they avoided Ether.
At press time, one Ether can be purchased for $1,209, and its 24-hour trading volume is $3.7 billion. In the previous twenty-four hours, the value of Ethereum has decreased by 0.27%, and CoinMarketCap presently places Ethereum in second place with a live market cap of $148 billion.
The attention of the Ethereum community has shifted to the forthcoming Shanghai hard fork update to the Ethereum network/altcoin. With this update, investors will be able to retrieve their staked Ether from the network validators.