New Ethereum On-Chain Report Reveals Massive Token Burnings Since September
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TokenTerminal, an on-chain analytics provider, recently revealed some interesting data on Ethereum (ETH) network fees and the effects of the EIP-1559 upgrade on its supply.
According to the report, ETH network users have paid over $1 billion in transaction fees over the past month. During the same time frame, over $824 million worth of ETH got burned. TokenTerminal noted that:
“ICYMI
Users of @ethereum have paid ~$1.0B in transaction fees over the past 30 days.
Of that ~$1.0B, 82.45% or ~$824M was burned and, thereby, returned to $ETH holders.
The burning mechanism is similar to a stock buyback because it decreases the number of tokens in circulation.”
According to other reports, more Ethers get burned than created during times of high network activity. That said, there are times when Ethereum’s supply enters deflationary conditions.
The EIP-1559 upgrade went live on August 5 on the ETH mainnet, and by mid-October, over 500,000 ETH had gotten burned. This process significantly eases selling pressure on the cryptocurrency and acts as a bullish trigger for ETH.
Meanwhile, the network’s core developers have launched the Ethereum 2.0 Merge (the transition from proof-of-work to proof-of-stake consensus mechanism) on an interoperable Devnet.
The Merge got activated on October 8 in a multi-client closed developer network with Besu, Erigon, EthereumJS, Geth, Nethermind, Nimbus, Lighthouse, Lodestar, Quilt, Prysm, and Teku clients onboard.
Key Ethereum Levels to Watch — October 18
Following a 16% bullish wave from the $3,400 axis, ETH peaked around the critical $3,970 resistance zone and came under mild selling pressure. The bearish pressure facilitated a price correction towards the $3,600 support, which got strongly repelled by the 4-hour 50 SMA line. This bullish move helped the second-largest cryptocurrency climb back above $3,800.
That said, the top altcoin appears to lack the bullish will to snap the $3,840 – $3,970 resistance zone, which could trigger renewed corrections towards the $3,600 – $3,400 area if this weakness persists.
Meanwhile, our resistance levels are $3,800, $3,900, and $4,000, and our support levels are $3,700, $3,600, and $3,500.
Total Market Capitalization: $2.45 trillion
Ethereum Market Capitalization: $442.1 billion
Ethereum Dominance: 18%
Market Rank: #2
