Ethereum Previously Soared After This Data: It Has Been Warming Up for the Last Week!

The increasing activity on the Ethereum (ETH) network has attracted attention with its similarity to what happened before the rise last year.

According to data provided by the on-chain analysis platform Lookonchain, the amount of ETH burned daily on the Ethereum network has increased by 163% in the last week.

Ethereum's transition to the Proof of Stake (PoS) mechanism with The Merge update in the past period brought with it a system that requires ETH burning and positively affects the supply.

The analysts pointed to the graph they shared and pointed to the dates January-October 2023:

From this graph, we can see that the amount of Ethereum burned daily started to increase before the $Ethereum price increased in January and October 2023.

Especially in such weeks when cryptocurrency prices increase, new meme coins printed on the Ethereum network and increased network activity lead to more Ethereum being burned and removed from circulation.

According to CoinGecko data, Ethereum, which has increased by 2% in the last 24 hours, is trading at $2,572 at the time of writing.