Basically, Ethereum has never looked better. However, the price action of ETH did not reflect this.
It’s been 100 days since the Ethereum merger, and the network has become more sustainable and environmentally resilient.
Proof-of-work mining has been replaced with a proof-of-stake consensus model. This has reduced network energy consumption by more than 99%.
On December 25, ETH developer “superphiz” commented on the story saying, “we just did the right thing.”
According to Beaconcha.in, there are currently 15.7 million ETH staked, which is around 13% of the total supply. At today’s prices, it’s valued at around $19.2 billion.
Additionally, there are currently over 490,000 active validators on the Ethereum network. Bitcoin’s hash rate plummeted due to extreme weather conditions and stress on energy grids in the United States. Ethereum no longer has this problem.
Ethereum leads the NFT business
Staking is not the only bullish fundamental for Ethereum. It is also the best NFT ecosystem in the world. According to Nansen, a total of $23.7 billion worth of NFTs were minted and traded on Ethereum in 2022.
Moreover, it is way ahead of the second largest NFT ecosystem, Solana. Other “Ethereum killers,” such as Cardano and Polkadot, don’t even come close to NFT activity.
Ethereum issuance is currently close to zero, according to tracker Ultrasound.Money. The supply is only growing by 0.012% per year and has fallen slightly from its high of 121.3K ETH.
The biggest gas guzzler right now is batch coiner CoinTool XEN, which has burned 164 ETH in the last 24 hours. XEN is a token anyone can mint that has a pyramid-like tokenomics, but it still seems to be popular.
Gloomy price predictions for ETH
The positive fundamentals for the network and the ecosystem have not been reflected in price action. Ethereum is currently trading at $1,220 at the time of writing.
There was hardly any price movement over the weekend as the asset remained limited at the $1,200 level.
However, analysts predict more price pain ahead for ETH. Additionally, technical indicators suggest that support at current levels may be broken soon.
In addition, bearish triangles are also present. This led one analyst to predict a drop to $1,080 for ETH prices.
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