The triple halving of Ethereum is happening as circulating supply collapses

  • The downward trend in Ethereum reserves on the stock exchanges continues, and a supply shock is brewing at ETH.
  • Active addresses that hold ETH for less than 30 days are increasing.
  • Social volume is declining, with analysts concluding that it is conducive to a bullish breakout in the short term.

Visa revealed the concept of the Universal Payment Channel over a Layer 2 network operated by Ethereum. As “The Merge” approaches, the Ethereum reserves on the stock exchanges are falling. A building up supply shock is likely to trigger a bull run and bring the altcoin closer to triple halving.

The Ethereum price exceeds $ 3,000 again on the way to triple halving

The Ethereum reserves on the exchanges have continuously decreased in the last few months. Given the sinking reserves, analysts are forecasting a brewing supply shock for Ethereum. Historically, a decrease in the circulating supply of a cryptocurrency is associated with an increase in its price.

Regardless of the price development of the altcoin, its supply on the stock exchanges has declined sharply since mid-September 2021. It hit its lowest level in six months based on data from the crypto market information platform Santiment.

Ethereum offering on exchanges.

Ben Armstrong, Youtuber and creator of BitBoyCrypto.com, recently commented on the falling supply to ETH,

1/3 of the # Ethereum offering was removed from exchanges in the past year. Institutional investors pile up in $ ETH futures.

I don’t know what to tell you but that’s all bullish sentiment and fundamentals for this bull run. #Bullisch – Let’s get it pic.twitter.com/1PuMmNhTEm

– Ben Armstrong (@Bitboy_Crypto) September 30, 2021

A downtrend in supply also suggests that market participants are accumulating and holding Ethereum. The wallet addresses that hold Ethereum for less than 30 days are on an upward trend. Since July 2021, an increase in wallet addresses holding Ethereum for less than a month has increased by 43%.

There are currently 3.87 million wallet addresses containing 19.44 million ethers based on data from the blockchain intelligence platform IntoTheBlock.

Ethereum wallets that hold ETH for less than 30 days

The ETH offer is held by 3.87 million wallet addresses.

Another key factor behind the altcoin rally is its social volume.

The social volume, or the mention of the coin on social media channels, is declining for Ethereum. This metric is considered an indicator of traders’ interest in the cryptocurrency. An increase in interest is followed by a decline based on historical trends.

In the case of Ethereum, social volume has decreased, making it conducive to a price rally.

Since the last week of July 2021, the social volume at ETH has decreased and the capital rotation in L1s was the focus. As we get closer to ETH2, or “The Merge,” when the transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) occurs, proponents expect an increase in social volume.

ETH social volume

Ethereum’s social volume since September 2020.

Payment giants and financial institutions worldwide are accepting the Ethereum network as a base layer to develop innovative concepts in DeFi and traditional finance.

The concept of the “Universal Payment Channel” from Visa, which enables payments via digital currencies of the central bank (CBDC) on various blockchains, is based on Ethereum. The concept is being developed as a layer 2 solution on the Ethereum blockchain.

Nikhil Shamapant, the analyst behind Ethereum’s “Triple Halving” narrative, confirmed the bullish developments in the altcoin ecosystem. Shamapant tweeted about his investment handle on Twitter, @SquishChaos:

FXStreet analysts rated Ethereum’s price trend. Analysts have predicted that there is a 61.8% probability that the altcoin will rise to a target of $ 3,200.

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