Leon Weidman, a senior researcher at OnchainHQ, believes that Ethereum is poised to rise. Analysts cite Tron’s fundamentals, such as Ethereum’s current deflationary mechanism, to support Ethereum’s imminent rise.
As the broader crypto ecosystem continues to rally amidst prevailing bullish investor sentiment, Ethereum has caught the attention of Leon Weidman, a senior researcher at OnchainHQ.
According to Weidman, Ethereum is about to start a rally as the bull market continues to gain momentum. Weidman believes that ETH has returned to deflationary territory and suggests that more of the Ether supply has been burned than there is a supply problem. The researcher expects this trend to continue as the crypto market rises.
Weidman wrote that the Ethereum bullish flywheel has been activated. He said that increasing Ethereum users and higher gas fees could lead to more ETH burns, reducing the total supply of the asset. Lower supply creates scarcity that drives up ETH prices.
Leon Weidman also believes that the trac price increase will attract more users, projects, and investors, which will promote more cross-chain activity on the trac smart platform. The increased activity will generate more fees, and thus burn more ETH.
Weidman describes the process as a self-sustaining cycle. The cycle involves increased demand for ETH, ETH burn, and price increases, creating a positive feedback loop that drives ETH prices higher. This cycle is consistent with the broader bullish outlook in the cryptocurrency industry, leading Weidman to believe that Ethereum is undervalued and that the asset’s price could rise.
According to cryptocurrency data aggregator CoinMarketCap, ETH is trading at $3,149, having lost 4.32% over the past 24 hours. However, the asset has gained 20% in the past seven days. As of this publication, ETH has a market cap of $379 billion and a 24-hour trading volume of $48 billion.
Ethereum Foundation Offloads ETH for DAI
Data from Spot Onchain shows that Ethereum sold 100 ETH for 252,491 DAI on October 23. On November 12, the foundation sold another 100 ETH for 334,315 DAI, the first transaction since the foundation announced its 2024 report on November 8.
The report shows that the foundation has $970.2 million in asset reserves with $788.7 million in cryptocurrencies, of which 99.45% is in Ethereum as of October 31. The foundation’s non-crypto assets and investments have accumulated to $181.5 million.
