Ether (ETH) fell by more than 5.1% in the last period from 24 hours to less than $ 2,600, while Bitcoin (BTC) is down approximately 2.9% over the same period at $ 95,700.
The largest price of Altcoin prices increased the Coindesk 20 index by almost 4% during the period in the middle of a market slowdown which also affected the equity markets on the President Donald Trump announcing Plans to unveil the reciprocal prices next week, which are the subject of fears of a trade war with the main business partners of the country.
However, Ether’s underperformance intervenes in the middle of other factors specifically influencing cryptocurrency, including its circulation diet recently increased the previous pre-fusion levels. The merger of Ethereum – The merger of the network with the chain of beacons which transferred it to a mechanism of consensus of proof of bet (POS) – was much expected to help its supply to decrease, and it did it during months.
The trend, however, overturned in April, weeks after activating the long -awaited “Dencun” upgrade. This upgrade has removed the growth of layer 2 networks by reducing their data costs and introduces transaction “blobs”, which has helped reduce transaction costs.
The reduction in transaction costs on Ethereum has meant that less ether is burned, which in turn has reversed the trend of the cryptocurrency. Since the introduction of the EIP-1559 in 2021, each ether transaction has had basic costs that are burned, helping to reduce ETH’s offer.
The reduction in burned ether has seen the supply of ETH increase in recent months to the point that its food in circulation has increased by 8,242 ETH since the merger, the data from the ultrasound.
Ether also saw the Securities and Exchange Commission (SEC) delay its decision on registration options for Ishares Ethereum Trust of BlackRock (ETHA), which could also weigh on the performance of the cryptocurrency.
Other factors, including a restriction of the Ethereum Foundation and increased competition from other networks, including Solana, have also affected ether, whose BTC value recently dropped to 2021 low. In a research report, JPMorgan said that ETH did not have a convincing story like that of BTC
Despite the lower performance, analysts stressed that the Prix d’Ether reflects a model he saw before which was followed by a renewed bullish momentum. On Friday, Jake Ostrovskis, a trader in OTC at Crypto Market Market Wintermute, told Coindesk that he saw “a strong demand free from Eth”.
Santiment analysts have underlined on social networks, there was a drop in the number of eTh token at a profit because they were exploited for the first time because the lowering feeling affects cryptocurrency, which could be A potential configuration for a surprise rebound “Once the cryptographic markets are able to stabilize.
