Ethereum: Deflationary? Yes, but there is more than meets the eye

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Ethereum: Deflationary? Yes, but there is more than meets the eye
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In January, ETH’s supply decreased by 10,145.72 units. February might be marked by a price decline. According to data from Ultrasound Money, in January, Ethereum’s [ETH] supply decreased by 10,145.72 units, resulting in a net deflationary value of approximately $16 million. As of this writing, the current total supply of ETH stood at 120,515,752, with […]

The decrease in the supply of ETH has several implications for the cryptocurrency market. A decrease in supply leads to an increase in demand, as less of the asset is available for purchase. This can drive up the price of ETH, making it more valuable. Thus, the increase in demand could also attract more investors to the market, which could further boost the price of ETH.

At press time, ETH traded at $1,569.93. In January, the altcoin’s value rose by 32%. However, as many investors rallied to take profits, buying pressure appears to have declined significantly.

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