Ethereum reached a new all-time high on Friday. According to blockchain data, smart contract blockchain Ethereum emitted fewer tokens than it burned in the last 24 hours. Token burning is the crypto market’s stock buyback equivalent. It means the tokens were removed from circulation. In part, this is owed to Shiba Inu’s strong gains, CoinDesk wrote.
The Ethereum token reached $4,402 this morning, passing its previous record high of $4,379 reached in May, according to CoinDesk data. At the time of writing, it is trading at $4,318.80.
Ethereum gains exceeding Bitcoin
So far this month, Ethereum has gained 45% since September compared to a 40% growth of Bitcoin. There is an indication that the market anticipates Ethereum to keep leading the price action in the weeks to come due to implied and growing ether-bitcoin volatility spread.
Ethereum price to keep rising, tokens in circulation down by 1.6K
According to Tokenview data for the past 24 hours, Ethereum produced 15,109.34 ETH and burned 16,710.2 ETH. This comes to a reduction of 1,600 ETH. Shiba Inu burned 770.12 of these, making the so-called Dogecoin killer the third-biggest ETH destroyer. Tether burned 1248.72 ETH and Uniswap V2 destroyed 2729.22 ETH.
Shiba Inu up 800% in October
SHIB hit an all-time high of $0.00008870, equivalent to a mind-blowing gain of 800% this month. Data of Defi Llama show that the TVL in ShibaSwap, a DEX that enables users to stake the token, has doubled this month, reaching $512 million.
Mass coin burning under EIP-1559
A large number of tokens is being removed from circulation under the Ethereum Improvement Proposal (EIP) – 1559, which the ecosystem introduced on August 5 this year. EIP 1559 burns a portion of fees paid to the miners. According to this upgrade, network use is connected to the amount of ether burned. It has removed 668,339 ETH from circulation since activation, an amount exceeding half of the new coins issued over the same period.
The bets are on: Will US watchdogs approve a futures-based ETF?
Some options traders are buying cheap out-of-the-money calls in expectation of a price rally as they anticipate US regulators will approve a futures-based exchange-traded fund soon. A ETH $15,000 call expiring in March 2022 has generated substantial demand. QCP Capital wrote on Telegram:
The market’s long-term attention seems to be shifting from BTC to ETH with potential ETH ETF release after BTC coupled withETH 2.0upgrade catalyst.
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