Ethereum's token supply has seen an increase of approximately 10,000 ETH this week, according to data from Ultrasound.money. This rise has resulted in a 0.43% annual inflation rate, attributed to a lower burn rate of 6,140 ETH and a higher issuance of 16,100 ETH. The uptick comes amidst a broader weakness in the altcoin market and a disappointing performance of Ethereum futures ETFs.
The price of Ethereum continues its downward trend, currently standing at $1,570 with a $9.6 billion 24-hour trading volume. This decline is further fueled by robust selling pressure from large investors and the Ethereum Foundation's conversion of $2.74 million worth of ETH into USDC via Uniswap V3.
In addition to these developments, Ethereum has registered year-to-date outflows exceeding $100 million, despite recent inflows of about $10 million as reported by CoinShares (ST:CS)' Digital Asset Fund Flows Weekly Report. Crypto analyst Ali Martinez noted consistent selling activity by crypto whales since February, leading to the redistribution or sale of over 5 million ETH with no signs of a trend reversal.
Despite the current conditions, if inflows regain strength, investors could anticipate a price upswing for Ethereum. However, the current market dynamics underscore the volatile nature of cryptocurrency markets and the impact of large-scale investor activity on token value.
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