Ethereum prices rose by 5 % over the past week to see its digital currency grow its highest weekly since July. Rece positive changes in the Ether Tuki economy will probably help this digital currency surpass the market leader in terms of price performance.
According to Kevin Desk, the rece update of the Ethereum Iellige Coract platform has affected the rise of its native token token, Ether.
Kevin Desk’s data shows that the price of Ethereum has risen by more than 5 % in the week ending October 5. This has been the highest weekly growth of Ethereum in the past six mohs, with a 5 perce increase in bitcoin prices.
Jordi Alexander, Chief Investme Manager at Selleni Capital, said:
Both original digital currencies (ultimately) will grow their own; But as people are still adapting to the rece (post -attribution) economy, the Ether move will be faster.
Ethereum, on September 9, changed its consensus mechanism from proven work to prove stocks and replaced extractors with validation; Institutions that share the capital on this platform and are responsible for verifying the transactions.
Since the update of the curre, the supply of ethereum has increased by 4.3 units. Now, if the China block coinued to use the work mechanism, net supply could have increased by more than 1.5 units during this period.
According to the data obtained from the Ultrasound.money website, the net atrium export rate, also known as the annual inflation rate, has fallen from 4.9 perce to zero; Lower Bitcoin’s annual inflation rate.
However, the data of the China Block Analysis Company “Iotheblock” shows that the net ethereum export rate has actually declined below zero. In other words, Ethereum has become an ai -inflation asset; A coin that decreases over time instead of increased. This is when investors around the world face a shortage of assets that can protect their money from unprecedeed inflation.
Ethereum will probably coinue to perform well
Compared to the Ethereum to Bitcoin, which measured the price of Ethereum compared to Bitcoin, it has grown by 5 % last week and recorded the highest increase since July. According to promine traders, the upward trend of Ethereum value against bitcoin can coinue.
Josh Olszweicz, head of the Research Departme at the Valkyrie Investmes Digital Fund Manageme Company, told Kevin Disk:
Ethereum will probably coinue to perform better than bitcoin; Because its annual issuance rate is declining rapidly. Therefore, by the mechanism of burning the transaction fee on this network, any increase in on-chian activities should definitely eer the Ethereum io the territory of ai-export (assets), which may have a significa effect on the price of this digital currency.
Ethereum activated a mechanism in August last year, which burns part of the commission of users’ transactions paid to the network. This mechanism has basically tied the number of burned or outdated ethereums to the exte of the Ethereum China block.
Therefore, as Olieswich said, increasing network use is more likely to divert supply and demand for the benefit of Ethereum buyers. According to Ethburned.info statistics, more than 1.5 million Ethereum’s valued from the circulation since August last year, with $ 1.5 billion.
Shiliang Tang, chief investme director in the Digital Currency Fund, Ledger Prime has said that the attractiveness of Ethereum’s ai -inflammation will increase over time and will attract investors.
Tang says:
Currely, many of the funds have been attracted to the Ethereum story more than bitcoin. I expect Ethereum to maiain its superiority over bitcoin; Because the ai -inflammatory nature of Ethereum will gradually feel over time.
He added.
As the curre price coinues (about $ 1.5), Bitcoin will coinue to face a surplus of supply by the miners.
Changing the Ethereum Network’s mechanism to prove stocks has forever rid of the market from the impact of the daily sales pressure of the miners. According to Cumberland, Ethereum extractors sold $ 5 million daily. Bitcoin coinues to use the mechanism of proof of work; Where the extractors solve complex algorithmic puzzles for transactions validation in exchange for rewards. These miners usually criticize their assets on a regular basis to finance the extraction operation.
Macroeconomic problems coinue
While Ethereum’s fundameal analysis emphasizes the coinuation of the uptrend, the digital currency is still vulnerable to macroeconomic problems.
Many expect the Federal Reserve on Wednesday to raise the bank ierest rate by 4.9 perce for the fourth time, and its managers will provide clues to a less accepted approach to the coming mohs. Expectations for the Federal Reserve’s position to turn a more gradual coractionary policies have pushed the market to invest in risky assets, including digital currencies.
However, if the Federal Reserve’s position on a more gradual coractionary policies is accompanied by the message that key rates can still be high for longer, sales pressure will probably return to the market.
Nick Timiraos of the Wall Street Journal, somehow known as the Federal Reserve spokesman, said in an article published this week:
The ceral bank can keep ierest rates high for a longer time; Because consumers and businesses are less sensitive to the coractionary process of curre monetary policy. The 5 perce increase in the federal Reserve this year has disturbed the asset markets.
