Ether (Ether) dropped more than 5.1% in the past 24 hours period to the bottom $ 2,600, while Bitcoin (BTC) dropped around 2.9% at the same time up to $ 95,700.
Altcoin’s largest price performance pushed to the CoinDesk 20 Index By nearly 4% over the period in the middle of a market collapse affecting the markets of the US president Donald Trump who announced plans to open reward tariffs on reward Next week, the fear of a trade war with the country’s major trade partners rises.
But Ether’s underperformance arises from other factors that influence cryptocurrency specifically, including the circulating supply that has recently increased previous pre-merge levels. The Ethereum combine-The network combines with the beacon chain that moved it to a proof-of-stake (POS) consent mechanism-is widely expected to help drop its supply, and do so for months.
The trend, however, upside down in April, weeks after activating high expectations “Dencun” has upgraded. This upgrading prevented the growth of layer-2 networks by reducing their data fees and introducing “blobs,” which helped reduce transaction fees.
Reducing Ethereum transaction fees means less ether burning, which reverses the cryptocurrency supply. Because the Introduction of EIP-1559 In 2021, each ether transaction had a base fee to burn, which helps reduce ETH supply.
The reduction in burning ether has seen the eth supply over the past few months until the point that the switching supply has grown 8,242 ETH since combining, data from Ultrasound.Money Shut up.
Ether also saw the Securities and Exchange Commission (SEC) recently delayed its decision on listing options for the List for Blackrock’s Ishres Ethereum Trust (ETHA), which can also weigh in on cryptocurrency performance.
Other factors, including a restriction of the Ethereum Foundation and increased competition from other networks, including Solana, also affect Ether, with the value associated with BTC recently dropped to 2021 lows. In a research report, JPMorgan said ETH Lacking in a compelling narrative Like BTC
Despite bearish performance, analysts pointed out that the price of Ether reflected a pattern it saw before it was followed by a modified bullish momentum. On Friday, Jake Ostrovskis, an OTC businessman in the Crypto Market Wintermute manufacturer, said to CoinDesk He saw “strong over-the-counter demand for ETH.”
Santiment analysts have been taught on social media There has been a falling volume of ETH tokens in one income since they first mined because emotion affects cryptocurrency, which can be a Potential to setup For a surprise to bounce “Once crypto markets can stabilize.”
