A month after the Ethereum merge supply is finally declining as hoped but the price of ether remains stuck Cryptocurrency - Markets HEAD TOPICS

A month after the Ethereum merge supply is finally declining as hoped but the price of ether remains stuck

10/21/2022 6:40:00 AM

A month after the Ethereum merge supply is declining as hoped but the price of ether remains stuck

Cryptocurrency Markets

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CNBC

A month after the Ethereum merge supply is declining as hoped but the price of ether remains stuck The supply of ether has turned downward, but its price remains stuck as the macro environment continues to be a challenge for investors. WATCH LIVE It's been a little more than a month since the Ethereum merge and one of the big changes that investors were looking forward too has now taken place: ether has become a "deflationary" asset.provided by Santiment, Ethereums active addresses have plunged to a four-month low.Fidelity Digital Assets – the cryptocurrency subsidiary of the finance giant Fidelity Investments – will allow its institutional clients to trade Ether (ETH).nonfungible token (NFT) activity. In crypto terms, that means that the supply of ether is now decreasing rather than increasing. But while many investors hoped that would push the cryptocurrency price higher (assuming there was no change in demand), it hasn't yet happened in a significant way. This suggests that the hype surrounding the much-anticipated upgrade hasn't materialized just yet. Despite basic supply and demand dynamics on the network, the macro backdrop still has a strong hold on crypto prices. In a recent Twitter announcement, Fidelity Digital Assets revealed the launch of “Ethereum capabilities” to institutional clients, which will be able to buy, sell, and transfer ETH. "Theoretically speaking, if we see a deflationary environment then there should be upward pressure on the price, but there are other factors that affect the ether price," said Owen Lau, an analyst at Oppenheimer.  In the meantime, the price of the ETH token has now slipped below the $1,300 level. "These tokens are still correlated with equity prices, with the macro environment. Furthermore, if any BCH holders went on to dispose of their coins, any accumulated gains or losses were subject to capital gains tax. That actually has a larger impact on the price currently than supply and demand..." Things could reverse Plus, he added, there's a chance that things could reverse, and the digital asset could become "inflationary" again. The price of ether has been slightly lower since the post-merge sell-off in mid-September. As of Tuesday afternoon it was down about 4% over the past month and the same amount on a month-to-date basis. The supply of ether decreases when the amount of ether "burned" on the network, or destroyed and removed permanently from circulation, is greater than the amount being created. However, for ETH holders who receive an equivalent airdrop of ETHW, this is beyond doubt subject to income tax, just like the BCH in 2017. The burn function is a "scarcity engine fueled by Ethereum's transactional utility," according to data provider Ultrasound Money. Last week, gas fees, or transaction fees, were high, likely as a result of higher traffic on the network. Ethereum uses those gas fees to burn tokens, so with higher fees the network had more money to burn. "We don't know when the Fed will pivot, we don't know the next CPI number, but there are some network specific things that could change the price," Lau said. "If there are more use cases built on top of Ethereum, that can also support the ETH price," he added. Its view is that section 43 of the Taxation of Chargeable Gains Act 1992 will apply to this scenario. "If there's another big NFT launch or a big sale and they're using ETH to be the medium of exchange, that could increase the demand as well. We just don't have all these catalysts, it seems like we just have not heard about them other than the merge itself." Staked ether has been increasing. At some point if the staked ratio goes high enough, then this deflationary scenario could actually turn back to inflationary. High gas fees can always come down however, Lau said, and that would mean the network would have less ether to burn. For U. "At some point, if you burn less ETH but at the same time people stake more, then you could see the network cross another equilibrium where the net supply would increase," he said. "It would become an inflationary asset… This situation may not last forever." . Read more:
CNBC » Ethereum Seeing Waning Address Activity Fidelity's Crypto Arm to Provide 'Institutional Ethereum Capabilities' Before ETH drops further, set some money aside for surprise taxes Lido Finance (LDO) Making Big Return: Crypto Market Review, October 20

Take a look at the Avs reverse retro sweater for the 2022-23 season

The Avs’ “reverse retro” sweater’s design elements are meant to pay homage to the Colorado state flag and the Rocky Mountains, as well as hockey teams of decades past. Read more >> What’s it’s dividend? caused by the upgrade Yeah Ethereum Seeing Waning Address ActivityEthereum's post-Merge performance remains disappointing when it comes to numerous metrics Fidelity's Crypto Arm to Provide 'Institutional Ethereum Capabilities'After launching an Ethereum Index Fund, Fidelity is now set to provide Ether trading options to institutional clients. Before ETH drops further, set some money aside for surprise taxesEthereum's Merge resulted in a Proof-of-Work airdrop. That means you could be on the hook for tokens you didn't even want. A ledger is a must have if your own Crypto/NFTs. 🔐Protect your assets. Ledger Crypto NFT BTC All according to plan? Cointelegraph exposed that the IRS Chairman is Kingpin from miles morales into the spider verse produced by Sony. Lido Finance (LDO) Making Big Return: Crypto Market Review, October 20Lido Finance rebounds for first time since Ethereum Merge implementation in one row with other altcoins like Cardano The Ethereum Killers Are All Zombies Now'My expectation is that the future of blockchain will look a lot like other operating systems and platform ecosystems...one dominant ecosystem and, most likely, one secondary one, not a fragmented market of many different chains,' writes pbrody. Opinion. pbrody Just wait for games antiprosynth pbrody should hyperledger fabric add tokens, corporations may evolve from shares to tokens; tokens that could be traded and used as a medium of exchange for labour, with a tiered hierarchy of DExs. and atomic swaps for transacting pbrody Mmmm that Ethereum privacy is sooooooo good! Oh wait... WATCH LIVE It's been a little more than a month since the Ethereum merge and one of the big changes that investors were looking forward too has now taken place: ether has become a "deflationary" asset.provided by Santiment, Ethereums active addresses have plunged to a four-month low.Fidelity Digital Assets – the cryptocurrency subsidiary of the finance giant Fidelity Investments – will allow its institutional clients to trade Ether (ETH).nonfungible token (NFT) activity. In crypto terms, that means that the supply of ether is now decreasing rather than increasing. But while many investors hoped that would push the cryptocurrency price higher (assuming there was no change in demand), it hasn't yet happened in a significant way. This suggests that the hype surrounding the much-anticipated upgrade hasn't materialized just yet. Despite basic supply and demand dynamics on the network, the macro backdrop still has a strong hold on crypto prices. In a recent Twitter announcement, Fidelity Digital Assets revealed the launch of “Ethereum capabilities” to institutional clients, which will be able to buy, sell, and transfer ETH. "Theoretically speaking, if we see a deflationary environment then there should be upward pressure on the price, but there are other factors that affect the ether price," said Owen Lau, an analyst at Oppenheimer.  In the meantime, the price of the ETH token has now slipped below the $1,300 level. "These tokens are still correlated with equity prices, with the macro environment. Furthermore, if any BCH holders went on to dispose of their coins, any accumulated gains or losses were subject to capital gains tax. That actually has a larger impact on the price currently than supply and demand..." Things could reverse Plus, he added, there's a chance that things could reverse, and the digital asset could become "inflationary" again. The price of ether has been slightly lower since the post-merge sell-off in mid-September. As of Tuesday afternoon it was down about 4% over the past month and the same amount on a month-to-date basis. The supply of ether decreases when the amount of ether "burned" on the network, or destroyed and removed permanently from circulation, is greater than the amount being created. However, for ETH holders who receive an equivalent airdrop of ETHW, this is beyond doubt subject to income tax, just like the BCH in 2017. The burn function is a "scarcity engine fueled by Ethereum's transactional utility," according to data provider Ultrasound Money. Last week, gas fees, or transaction fees, were high, likely as a result of higher traffic on the network. Ethereum uses those gas fees to burn tokens, so with higher fees the network had more money to burn. "We don't know when the Fed will pivot, we don't know the next CPI number, but there are some network specific things that could change the price," Lau said. "If there are more use cases built on top of Ethereum, that can also support the ETH price," he added. Its view is that section 43 of the Taxation of Chargeable Gains Act 1992 will apply to this scenario. "If there's another big NFT launch or a big sale and they're using ETH to be the medium of exchange, that could increase the demand as well. We just don't have all these catalysts, it seems like we just have not heard about them other than the merge itself." Staked ether has been increasing. At some point if the staked ratio goes high enough, then this deflationary scenario could actually turn back to inflationary. High gas fees can always come down however, Lau said, and that would mean the network would have less ether to burn. For U. "At some point, if you burn less ETH but at the same time people stake more, then you could see the network cross another equilibrium where the net supply would increase," he said. "It would become an inflationary asset… This situation may not last forever." .