The Ethereum price has cranked to a five-month high today. Furthermore, ETH issuance is the most deflationary since the Merge transitioned the protocol to proof-of-stake.
Ethereum prices have reached their highest levels since mid-September. The Hong Kong crypto hub narrative has buoyed markets, and Ethereum is riding the wave.
Ethereum issuance has also fallen to its most deflationary level since the Merge occurred in mid-September.
The current circulating supply of ETH is 120.49 million. It has decreased by 23,651 ETH or roughly $40 million since the Merge, according to the UltraSound.Money tracker.
The supply growth is currently -0.7% per year as more than 4,100 ETH gets burnt daily. This week has seen the most accelerated rate of deflation since the Merge. However, gas prices have ticked up this week, resulting in higher burn rates.
Institutions Piling into Ethereum
Staking continues to be a solid momentum driver, despite the SEC’s war on crypto and attack on staking services.
According to Ultrasound.Money, there is currently 16.6 million ETH staked on the Beacon Chain. At current prices, this is worth around $28 billion. Additionally, this works out at 13.8% of the total supply, which is currently shrinking at its fastest rate.
In March, the Shanghai update will enable the phased release of staked ETH. Furthermore, this has been considered bullish for Ethereum as it will enable more flexible staking options like liquid staking for investors.
Ethereum’s supply economics and staking narratives aren’t the only things driving prices higher. According to on-chain sleuth ‘Lookonchain,’ institutions have also been piling into the asset over the past week.
It found that several funds and institutions have poured nearly $1.6 billion into the crypto market since February 10. This has been bullish for both Bitcoin and Ethereum, as both have reached new 2023 highs today.
ETH Price Pumps
The Ethereum price touched $1,700 a few hours ago during the Thursday morning Asian trading session. The asset is showing a 9.3% gain on the day as it revisits a multi-month high, however, heavy resistance lies at this level.
At the time of press, ETH had dipped marginally to trade at $1,680.
Some analysts predict the asset to reach $2,000 in the coming months as its fundamentals strengthen. However, ETH remains down 65.3% from its November 2021 peak of $4,878.
Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
