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- According to the recent historical data, Ethereum is on its way to becoming Deflationary after the Merge.
- The Merge is all set to be scheduled on September 19 this year.
The developers are working on the Ethereum (ETH) network. And tentatively planned the merge upgrade for September. It fetches the attention of analysts who are interested in the crypto market. Also, look at past data to indicate the token’s movements after the update.
The Chronological Data Source
Lucas Outumuro, the director of research at data analytics startup IntoTheBlock, shared a chart on his Twitter account on July 22. That demonstrates the chronological data of Ethereum’s net distribution and its prediction exceeding the Merge.
Studying Ethereum’s demeanour after another significant uprise – the EIP-1559 in August 2021. He illustrated that the token’s net issuance could vary between -0.5% and -4.5%. It will depend on the network fees.
The deflation of Ethereum may result in its price drop. It could be profitable for crypto investors due to improving their purchasing capability.
Additionally, in March, Bitcoin’s inflation stood 5x lower than the U.S. dollar’s. At the time, Bitcoin’s inflation rate decreased as it followed its “preprogrammed, quite predictable downwards rotation.”
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The Analytical Price Of Ethereum
At present, the report of the Merge scheduling may somehow boost the price of Ethereum. It kept the price above the $1,500 mark. It increased its value by over 45% in a week. It may restore wealthy crypto investors’ confidence. Assuming they enter accumulation mode.
While writing, Ethereum is trading at $1,522.38, down by 6.62% in the last 24 hours. The total market worth of the decentralised finance asset is $185.82 billion.
The current price represents the ups and downs of the crypto market. And proving its high volatility.
In July, the crypto community predicted that ETH would trade at an average price of $2,539 by the end of this month. That reportedly collected 11,529 community votes.
Additionally, the committee of 53 fintech specialists has recently predicted that the second-largest crypto asset by market capitalization would trade at $1,711 by the end of this year. But not before falling to its low of $675.
Conclusion
The price of Ethereum Classic (ETC) has recently seen a remarkable drop. The network activity partly powers the actual blockchain’s successor. That is on the main Ethereum blockchain and preparing for the Merge upgrade.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
