Ethereum, the second-largest cryptocurrency, has reportedly set a new high in terms of the flow of ETH deposits to exchanges, according to a recent tweet from on-chain data aggregator Santiment.
However, this most certainly also portends impending sharp price volatility.
ETH active deposits surge to new high
Investors have been aggressively adding ETH to cryptocurrency exchanges, according to a study by Santiment, and the value of this indicator has risen to an eight-month high. The Santiment analysts are investigating the situation right now to determine the cause.
They now think that this rise in active deposits is likely to portend impending price volatility for ETH. This may have a similar impact on the price of ETH as the integration of the Merge update in mid-September of last year or the failure of the FTX behemoth in the first few days of November 2022.
The quantity of unique ETH deposits accepted by exchanges as of right now is close to 9,200, which is the biggest number since September 15 of last year, when The Merge was launched on the Ethereum chain.
Ethereum’s price has dropped from its most recent high of $1,930 on April 30 to where it is now trading at.
Ethereum had a dramatic decline from $1,627 to $1,100 in a matter of days after the FTX crisis on November 5.
$291 million in ETH burned since The Merge
Ethereum developers have had access to burning ETH ever since the London hard fork in 2021 by transferring a portion of the transaction fees to non-spendable wallets. By doing this, they are making the currency scarcer by lowering its quantity in circulation. The price may theoretically increase if the supply is drastically reduced.
Ethereum is been torched like crazy this year, according to a message from Twitter user @misterrcrypto. He thinks that the “meme coin season” is to blame; developers and communities for popular meme cryptocurrencies like SHIB have been aggressively burning millions of dollars’ worth of coins, and since all of these meme cryptocurrencies are built on Ethereum, there are more transactions as a result.
Due to the increased traffic on the Ethereum network since Sept. 15, when The Merge went into effect, developers have been able to destroy 153,265.34 ETH. This is equal to $291,175,025 in value.
According to @misterrcrypto, ETH will be burnt in significantly greater quantities when the bull market starts.
