The context: even if Ethereum’s offer increases, it is always lower than on bitcoin or that before merger. Besides, this would not be the main problem explaining the price of the price of the assets. However, while the market hopes to show signs of recovery, a key question remains for the month of April: can Ethereum find its bullish momentum? Ethereum and the concerns of March: slowdown in acitity and fall in prices on March 11, Ethereum fell to a hollow of two years to $ 1,759. This prompted traders to “buy the drop”, triggering a rally at $ 2,104 on March 24. However, market players resumed the profits, causing a brutal fall in the Ethereum course on the rest of the month. Unfortunately, on March 31, ETH closed below the critical level from $ 2,000 to $ 1,822. In parallel, in addition to the difficulties of the Ethereum course, the blockchain also experienced a severe decline in terms of activity. According to Artemis, the daily number of active addresses having made at least one transaction in ETH fell 20 % in March. Consequently, the total number of monthly transactions that take place on the network has also dropped. They are 1.06 million over the period of 31 days which was examined. Thus, the number of transactions carried out on ETH decreased by 21 % in March. Ethereum network activity. Source: Artemis generally, when more users are active in Ethereum, the rate of distribution of tokens increases and contributes to the dynamics of the ETH deflationary offer. However, when user activity decreases, the destruction rate is reduced, leaving many parts in circulation and increasing its supply in circulation. This is what happened for ETH in March. Indeed, its supply in circulation is currently increasing. According to Ultrasound Money data, 74,322.37 parts have been added to the range of circulation in the last 30 days. Offer in circulation of Ethereum. Source: Ultrasound Money usually, when the supply of an asset increases in this way without a corresponding demand to absorb it, this causes a drop in terms of prices. Thus, ETH could extend its decline in April by continuing in this way. Where is the token going? In an exclusive interview with Beincrypto, Gabriel Halm, analyst from Intotheblock, noticed the inflationary trends that persist around ETH. HALM notably said: “Although Ethereum’s offer has recently stopped being a deflationary, its annual inflation rate is still low, only 0.73 % in the last month. It is a level drastically lower than that of Bitcoin and that of ETH before its merge. For investors, this moderate inflation level is not necessarily a major alert signal. This, provided that the use of blockchain remains strong as is the activity of developers. In addition, even if the Ethereum blockchain is experiencing a declining activity, the consequences would have been overestimated according to Halm. “Historically, from September 2022 to early 2024, Ethereum’s offer remained a deflationist, but the ETH/BTC pair still fell as is the case today. This suggests that the macroeconomic forces and the trends in the whole market can play a much more significant role than simple variations in terms of token supply. »Comparison of ETH/BTC market capitalization. Source: Intotheblock for this month, here is what the expert expects about Ethereum and its offer: “In the end, the fact that Ethereum decreases or lends itself to a rally in April will depend on the feeling of the market and macroeconomic trends rather than the variations in the supply in circulation. However, it is essential to monitor network developments that could stimulate renewed activity and strengthen the position of leader in ETH throughout the crypto landscape. Morals of history: the problem is elsewhere for ETH, prices do not fall for nothing but they do not fall due to the offer. Notice of non-responsibility Non-responsibility notice: In accordance with the guidelines of The Trust Project, this article of price analysis is only intended for information purposes and should not be considered as financial or investment advice. Beincrypto undertakes to provide exact and impartial information, but market conditions may change without notice. Always carry out your own research and consult a professional before making any financial decision.
