In this article. Leon Weidman, head of research at OnchainHQ, believes that Ethereum is in deflationary territory as it burns more units than it issues.
The researcher believes that #ETH could gain momentum as bullish market sentiment prevails in the broader crypto ecosystem.
ETH has gained 20% over the past seven days, but has fallen 4.32% in the past 24 hours, bringing its price to $BTC Leon Wideman, a senior researcher at OnchainHQ, believes that #Ethereum is on the cusp of its upswing. The analyst cites strong fundamental factors supporting the upcoming growth of ETH, such as Ethereum's current deflationary mechanism.
As bullish investor sentiment prevails and the entire #cryptocurrency ecosystem continues to grow, Ethereum has caught the attention of Leon Wideman, Senior Research Fellow at OnchainHQ.
According to Mr. Wideman, Ethereum will soon rise as the bull market gains momentum. Wideman believes that ETH has returned to deflationary territory, suggesting that Ether has been burned more than supply issues. The researcher expects this trend to continue as the cryptocurrency market gains momentum.
Returning to deflation territory: more ETH burned than issued.
As the bulls gain momentum, this trend is expected to intensify.
Wydman writes that the Ethereum bullwheel has intensified. He stated that the increasing number of Ethereum users and rising gas prices could lead to more ETH being burned, reducing the overall supply of the asset. The reduced supply will create a shortage and lead to an increase in the price of ETH.
Leon Weidman also believes that the price hike will attract more users, projects and investors and increase activity in the smart contract platform chain. The surge in activity will lead to an increase in fees, which in turn will lead to more ETH being burned.
Weidman calls this process a self-sustaining cycle.
According to cryptocurrency data aggregator CoinMarketCap, ETH is trading at $3,149, down 4.32% over the past 24 hours.
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