Ethereum, the world’s second-most valuable digital asset, is gaining momentum as the price of ETH is approaching another all-time high. ETH has stayed above the important price level of $3,800 since 3 September 2021.
According to Coinmarketcap, the total crypto market dominance of Ethereum currently stands at around 20%. ETH now has a market cap of approximately $460 billion. The cryptocurrency is up by nearly 25% in the last seven days.
“Ethereum surged in the last week coming close to breaching the $4,000 level. The crypto asset began the week below $3,200 but rose quickly through the week, reaching $3,981 by Friday. Over the weekend gains have flattened but remain trading in this range. A confluence of factors is contributing to the rising price of ETH. ETH burning, staking, gas fees, transactions and locked away tokens on Defi are all working in concert to support price levels,” Simon Peters, Market Analyst at eToro, said.
Ethereum’s latest bullish rally accelerated in August as the digital asset jumped from $2,400 on 1 August to nearly $3,500 on 31 August. September started on a positive note for ETH as the price of the world’s second-largest cryptocurrency jumped by 12% within the first 5 days of the month.
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Ethereum’s Inflation Rate
Commenting on the latest activity regarding Ethereum’s inflation rate, Peters said: “For the first three weeks of August, according to the Delphi Digital data, ETH’s inflation rate hovered just below 3%. This rose to touch 3% around 23 August before collapsing totally by the end of the month. ETH’s inflation rate was around 0.5% as of 31 August. This is largely down to the increase in burning of ETH tokens, with some 150,000 ETH burned since the EIP 1559 ‘London hard fork’ was implemented.”
“The downward movement of ETH’s inflation rate is indicative of earlier predictions that the crypto-asset could become deflationary. As more Ethereum coins in the network are burned, scarcity will increase. As this scarcity rises, it could have significant further effects on price levels,” he added.
Ethereum addresses with non-zero balance reached an all-time high of 60.7 million in August 2021.