Over the past 12 months, Ethereum has increased in price by 980%, while Bitcoin has only increased by 340%.The practicality of smart contracts has led toincreased demand for ETH, and the deflationary mechanism sometimes burns more than miners can mine.
Image Source: Cryptocurrency ExchangeStormGain
The market was one of the drivers for EthereumNFT, which has grown from $ 17 million at the beginning of the year to the current $ 1.8 billion. Almost all well-known world brands, from NASA to the Hermitage, have their digital collections. The only thing holding back the more rapid growth of the segment is the high fees, which again exceed $ 50 on the Ethereum network.
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Increased costs stop widespreadaudience from using NFT, where most art objects cost less than $ 100. Nevertheless, the activity of users of the largest platform for the exchange of digital art - OpenSea - puts the site in first place in terms of the volume of ETH burned.
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Burn ETH steel with the EIP-1559 update, whichadded a deflationary mechanism: the base rate per transaction is now destroyed, and miners receive a tip, the size of which is determined by the addressee. At the moment, there have been burned coins with a total value of $ 2.5 billion, and often more is burned during the day than is mined by miners. This trend gained momentum again at the end of October when there was an increased demand for meme cryptocurrencies.
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Most dog-themed meme cryptocurrenciesis based on ERC-20 tokens, and in order to buy them, you first need to acquire ETH. In October, the best gains were shown by: ELON (4000%) SHIB (800%), BABYDOGE (560%), SafeMoon Inu (540%). The surge in interest in HYIP tools has led to an increase in activity on the Ethereum network.
The increased demand for meme cryptocurrencies isundulating character. In contrast, NFT creates a more sustainable demand for Ethereum, which ultimately leads to long-term growth against Bitcoin. Vitalik Buterin's coin can get even more impetus with the transition to proof-of-stake, but that's another story.
Analytical group StormGain
(platform for trading, exchanging and storing cryptocurrency)
