So I was Scrolling Binance Square Some People Writing ETH was Dropped From 3900 to 3500 Because Someone took Huge Profits And Buy Again
In Actual This was Not the Reason Behind that drop So what Was The Actual Reason 👇👇
It was Because of Increased Supply Of ETH which was Increased From 11167.75 ( which was on 17/05 as i also mentioned in below attached Post which was related to Market overview on that Day) To 11535.62 in last Means 367.87ETH (worth 1.434M$) was increased at that time which also caused Panic Selling and thus price dropped Below 3500 and Suddenly Price Corrected
Always Keep Eyes open 👁️
So Things you need to know 🤝👇
What is ETH supply?
The total amount of ETH that exists, which equals the amount created minus the amount burned.
Why is ETH supply important?
The supply of any cryptocurrency is essential to understanding a coin's scarcity. ETH's supply plays a role in the functioning, security, and economics of the Ethereum blockchain.
Why does ETH supply change?
New ETH is created to incentivize validators in the Proof of Stake consensus mechanism when they verify & validate blocks on the Ethereum blockchain. When transactions occur on the blockchain, a portion of the ETH paid to perform the transaction is burned (the "base fee"), and a portion is given to validators (the "priority fee"). When the network is congested (i.e. when there are a lot of transactions), this causes ETH "gas" (transaction fees) to increase, which can cause more ETH to get burned. If more ETH is burned than created, this causes ETH to become deflationary.
