Ethereum could take ‘months to be deflationary’ – What about ETH’s bull run?

A spot check on Glassnode confirmed Hougan’s claim. Per the crypto intelligent data provider, daily issuance at the network on the 22nd of May was 2.58K ETH.following the Dencun upgrade, as ETH’s burn rate trailed the issuance rate.It meant that there was more ETH supply that could derail further price prospects.

After The Merge in 2022, ETH’s issuance attained a deflationary status, prompting BitMEX founder Arthur Hayes to refer to it as a ground for ‘Nevertheless, the ETF approval catalyst could outweigh the inflationary status and front a massive run. According to Bernstein, a private investment firm, ETH could rally 75% to $6,600 after the approval, citing BTC’s price action in January after the ETF launch.

Crypto asset trading firm, QCP Capital, shared a similar sentiment, albeit with varying nuances based on ETH funding rates and volume changes.‘ETH Perp funding went from 50% to flat in 12 hours, with June forwards still yielding 15%, possibly reflecting diminished short-term speculation but sustained medium-term bullishness.’

This meant that traders in the futures market expected ETH to rise in the coming weeks. However, QCP Capital underscored that ‘short-term downside volatility’ could be likely.At the time of writing, ETH consolidated below $3800, 22% down from its last cycle’s all-time high of $4,867.Benjamin is a Telecommunication Engineering graduate who is passionate about crypto-markets and unraveling market trends.

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