Ethereum Deflation Breaks Record. After completing The Marge or massive software upgrade in September last year, Ethereum continues to experience a weakening in price. Until this crypto coin experienced a deflationary spike, even leading the biggest decline in digital asset trading.
After six months of doing The Marge the supply of Ethereum vanished by 63,000 ETH.This drop sent Ethereum’s value down to its lowest level, from $1,963 at the time Ether completed The Merge update to $1,482 at the close of trading (Tuesday/14/2023).
Meanwhile, the second largest crypto asset burn rate in this market has reportedly reached 1,233,000 ETH. This number decreased by around -0.45 percent just in the period before the last
Before experiencing a collapse, The Merge that was carried out by Ethereum was initially predicted to be able to increase the popularity of this second largest coin in the digital market, so that it was claimed to be able to outperform Bitcoin’s position.
This is because investors’ long-awaited update to The Merge can speed up the process of reducing its carbon emissions by nearly 99.95 percent and can help miners save electricity consumption by as much as 0.2 percent when their computer bank produces new ether tokens and performs transactions on the blockchain.
Ethereum Deflation Breaks Record. But unfortunately, after experiencing this renewal, the value of Ether slowly began to decrease. It is not known exactly why the Ether coin experienced a price collapse.
However, launching from Being Crypto, the price of this crypto fell because investors were burdened by the tightening of the Fed’s monetary policy which plans to raise interest rates to fight high inflation.
This condition is exacerbated by the bankruptcy that has hit a number of crypto-friendly banks, this reason has made investors start to lose faith in crypto assets and are desperate to make rush money so that the value of Ethereum experiences a sharp price drop.The setback also triggered a reduction in the supply of Ethereum on the global market by as much as 40 million US dollars.