Ether climbed to a 3 1/2-month high a day after Ethereum set a new record for daily coin burn. Bitcoin continues to trade sideways as August’s top performer, SOL, takes a bull breather.

Ether, the native token of Ethereum’s blockchain and the second-largest coin by market value, is trading above $3,500 for the first time since May 18, CoinDesk 20 data show.

The cryptocurrency has gained 4.5% in the past 24 hours. The advance confirms a breakout from the recent two-week trading range of $3,000 to $3,400, setting the stage for an extension of the bullish move from July lows near $1,800.

“The latest move higher represents a bullish continuation of the Ethereum Improvement Proposal (EIP) 1559-driven rally, which is probably enhanced via the ongoing non-fungible tokens (NFT) hype, which mainly happens on Ethereum,” said Simon Dedic, managing partner of Moonrock Capital, a London-based blockchain advisory and investment partnership firm. The EIP burns a portion of fees paid to miners.

fxsoriginal

Ether's daily chart (TradingView)

Data tracked by crypto intelligence platform OKLink shows Ehereum burnt 12,000 ETH on Tuesday, a daily record for coins destroyed since the implementation of EIP 1559 on Aug. 5. Of the total coins destroyed, the NFT market OpenSea accounted for 2,000 ETH. The EIP 559 has destroyed nearly 40% of the coin issued since activation.

fxsoriginal

Daily ether burn (OKLink)

Alex Svanevik, CEO of blockchain data company Nansen, also cited the NFT boom and the resulting decline in the net ether issuance as a bullish catalyst along with the continued rise in the amount of ether staked in the Beacon chain, which introduced proof-of-staking to Ethereum’s blockchain last December. Glassnode data show there are now more than 7 million ether worth $24.8 billion held in the deposit contract for the Ethereum 2.0 Beacon chain. As discussed yesterday, analysts expect the combination of these factors to lead to a supply crisis in the ether market.

The market sentiment may have received a boost from Offchain Lab’s rollout of Arbitrum One, an Ethereum scaling solution that uses optimistic rollups technology to process transactions at a higher speed and lower cost than the Ethereum mainnet.

Indeed, Arbitrum facilitating relatively low-cost transactions could mean ether burn. However, along with other scaling solutions such as Polygon, the project will help ease Ethereum network congestion and bring long-term value to the smart contract blockchain. Arbitrum’s mainnet went live on Tuesday.

While ether is gaining altitude, bitcoin remains locked in the narrow range of $46,000 to $50,000. According to Delphi Digital, blockchain data shows continued accumulation by holders amid the range play.

Ethereum alternative Solana’s SOL token is trading near $110, having pulled back sharply from record highs near $130 reached Tuesday. Investors could be rotating money back to ether, having bought Solana and other so-called Ethereum killers in the second half of August. SOL nearly tripled in the second half of August and ended the month with a 194% gain.


All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Recommended content


Recommended Content

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high

Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines. 

More Cryptocurrencies News
TON set to launch synthetic Bitcoin to boost its DeFi solutions

TON set to launch synthetic Bitcoin to boost its DeFi solutions

TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.

More Ton News
Maker Price Forecast: MKR could stage 40% rally

Maker Price Forecast: MKR could stage 40% rally

MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.

More MakerDAO News
USDT market cap crosses $120 billion as stablecoins continue their uptrend

USDT market cap crosses $120 billion as stablecoins continue their uptrend

The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.

More USDT News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP