• ETH burn rate accelerated due to meme coin pumps.
• Burning of ETH fees is likely to increase, leading to more ETH being removed from circulation and positively impacting the price of ETH in the future.
• With gas fees continuing to rise, the utility of ETH will be called into question by those seeking alternative blockchains for transactions.
High Burn Rate of ETH Caused by Meme Coin Pumps
The increasing popularity of meme coins like PEPE has caused a surge in Ethereum network activity, resulting in a high burn rate of ETH. Over the past month, approximately 23% of all ETH burnt since the Merge has been destroyed. This trend is putting deflationary pressure on Etheruem as Uniswap alone has accounted for 32,800ETH burnt in the last 30 days.
Positive Impact on Price of ETH
The burning of ETH fees is likely to increase, leading to more Ethereum being removed from circulation and positively impacting its price in the future. Over the past 24 hours there was a 2.57% reduction in price with a low and high at $1,839.89 and $1,934 respectively and trading volume reached $8,836,988,765 which accounts for 9.31% total volume.
High Gas Fees Questioning Utility Of Ethereum
Despite this positive trend however gas fees continue to rise (in some cases north of $15) calling into question the utility of Ethereum by those seeking alternative blockchains for transactions rather than memes.
Net Burned Since The Merge
Since the Merge around 60K ethers have been net burned representing an annual supply reduction ceteris paribus or “all else being equal” according to ultrasound money data.
With popular meme coins such as PEPE WOJAK and TURBO generating nearly 3 billion dollars worth in trade activity if this trend continues we can expect even higher burning rates of ETH removing them from circulation forever ultimately leading to a positive impact on its price compared with today’s prices