Free Ethereum? Supply Grows by $47 Million in 30 Days

Free Ethereum? Supply Grows by $47 Million in 30 Days

Ethereum, often hailed as “ultrasound money” after its transition to proof of stake, faces inflation concerns. In the last month, the global supply of Ethereum (ETH) increased by nearly 30,000 ETH, approximately $47.9 million. This surge in supply is primarily due to a significant drop in transaction activity on the free Ethereum network, with fewer NFT trades and less DeFi activity.

Ethereum Coin Developers Remain Unfazed

Despite the recent inflationary trend, Ethereum’s core developers appear unconcerned. Micah Zoltu, an Ethereum coin developer, mentioned that the issue is considered insignificant in the grand scheme of things. Danno Ferrin, another Ethereum core developer, pointed out that Ethereum’s short-term inflation remains lower than that of other chains and the broader economy.

Inflation Trends Amid Global Economic Climate

The increase in Ethereum’s supply aligns with rising inflation concerns on a global scale. In the United States, prices have seen the sharpest year-over-year increase since 1981, prompting the Federal Reserve to raise interest rates. This move has consistently impacted the values of cryptocurrencies like Bitcoin and Ethereum.

Ethereum’s Bullish Run Faces Resistance at $1,745

Sellers Gain Momentum as Bulls Struggle

1 ETH in USD recently had a bullish run, which encountered resistance at the $1,745 level. Although it briefly found support at $1,619, bears have maintained control. On-chart indicators suggest a potential downturn, with the Chaikin Money Flow (CMF) showing a significant outflow of capital from 1 Ethereum in Dollars.

Technical Indicators Point to Bearish Sentiment

Technical indicators further highlight the bearish sentiment despite the current ETH difficulties. The Relative Strength Index (RSI) has shifted from the upper to the lower range, indicating reduced buying pressure. The On Balance Volume (OBV) continues to trend downward, limiting the chances of a sustained bullish uptrend.

Long-Term Holders Hold the Key

The Market Value to Realized Value (MVRV) ratio reveals the difference between short-term and long-term holders. Short-term holders have seen slight profits, while long-term holders remain in negative territory. This suggests that bulls could still make a recovery, as long-term holders are less likely to join the selling wave.

Ethereum Coin Futures ETFs and the Crypto Market

Ethereum Futures ETFs Enter the Market

The introduction of Ethereum Futures ETFs is making waves in the crypto market. Grayscale’s Ethereum fund follows this trend, as it aims to replicate its success with its Bitcoin fund. This move stems from a courtroom victory against the SEC, which initially rejected its Bitcoin trust conversion into a spot ETF.

The Broader Crypto Investment Landscape

The broader crypto investment landscape is evolving with the introduction of various investment products, including ETFs. This development reflects the maturation of the cryptocurrency market and provides investors with more options for exposure to digital assets.

Impact on Ethereum Coin Development

Profits generated from Ethereum Futures ETFs could have a positive impact on free Ethereum’s development. These funds could potentially support Ethereum protocol developers, fostering innovation and growth within the ecosystem.