Ethereum prices have surged to their highest levels for ten weeks. Additionally, ETH issuance is back in the deflationary territory as network demand ramps up.
Ethereum prices closed in on $1,600 during the morning of Jan. 16. Building further on weekend gains, ETH tapped its highest price since Nov. 8, reaching $1,589 this morning.
The asset has made 3% over the past 24 hours and was trading at $1,568 at press time. Furthermore, ETH has gained more than 30% over the past fortnight. It has slightly outperformed Bitcoin, which has notched up 27% over the same period and 2.1% on the day.
The bullish momentum for Ethereum is rising a couple of months before the Shanghai upgrade. This will enable the phased withdrawal of staked ETH parked on the Beacon Chain for more than two years.
Ethereum Issuance Declines
Ethereum’s on-chain fundamentals have also strengthened this year following a terrible 2022. According to the Ultrasound Money tracker, ETH issuance has fallen into deflationary territory once again. The current supply growth is -0.09% per year, it reported at the time.
The Ethereum burn rate is currently around 732,000 ETH per year. The issuance rate is around 622,000 ETH annually, meaning more is being destroyed than produced.
Markets are still overall in bear territory, so Ethereum demand will likely increase as more bulls return. As gas prices increase, this will have a bigger impact on the burn rate. The result is a higher deflation rate and a shrinking supply, which is very bullish in the long term.
Ethereum value settlement is also much higher than that of Bitcoin. Industry observers have reported that this month, the settlement value for Ethereum is almost ten times more than that on the Bitcoin network.
Elsewhere In the Crypto Markets
Crypto markets are still in the green during the Monday morning Asian trading session. They have gained 1.7% on the day to reach $1.03 trillion, according to CoinGecko.
Momentum over the past week has pushed markets to a ten-week high. Furthermore, this has eradicated all losses from the crash that followed the FTX collapse in early November.
Other crypto assets performing well this morning include Ripple (XRP), Polygon (MATIC), Shiba Inu (SHIB), and Near Protocol (NEAR).
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