When EIP-1559 was introduced to Ethereum last month, it was supposed to slow down the rate at which the supply of ETH grows. But over the last 24 hours, the supply of ETH isn’t growing at all. It’s shrinking. More Ethereum has been burned on the network than minted over the last 24 hours, meaning there’s less ETH available today than there was yesterday. Ethereum experts believe this is a first for the network.
EIP-1559 was a proposed coding change to the Ethereum blockchain that allowed block sizes to expand so that more transactions could be sent through on the network. The Ethereum network has struggled with congestion thanks to the popularity of NFTs and decentralized finance apps such as lending protocol Aave and exchange Uniswap, as such tools use up the network’s finite resources.
Dapper Labs’ CryptoKitties are seminal NFT crypto collectibles. While there are older collections (such as CryptoPunks), CryptoKitties were the first NFTs to be minted using Ethereum’s ERC-721 token standard, and their popularity quickly congested the network. Now, amidst the recent NFT market resurgence, some of the oldest CryptoKitties are in hot demand again. About $7.27 million worth of CryptoKitties NFTs were transacted over a 24-hour period from Thursday into early Friday, according to data from DappRadar.
From a technical perspective, Ethereum behaved as predicted in our last weekly technical report. It made the upside move that we expected. For this week we expect the cryptocurrency to make small consolidations followed by pushes to the upside. This week we will possibly see a new all-time high for Ethereum . Technically, we don’t see any serious price action happening beyond small-medium retracements.
Trade with care.
Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.