Ethereum continues to face various challenges in the cryptocurrency market, including an all-time supply high. Recent updates to the platform have also altered the token's economics.
Ethereum's All-Time Supply High
Ethereum's supply now exceeds 120.7 million ETH, marking an all-time high. This changes the post-merge deflationary perspective, creating downward pressure on price. The increase in supply may lead to a scenario where demand fails to keep pace with price growth.
Dencun Upgrade and Its Impact
The Dencun upgrade aimed at reducing fees, weakening Ethereum's deflationary mechanism. This situation may negatively affect demand and future price dynamics, as lower fees make the platform less attractive to investors.
Prospects of the Pectra Upgrade
The Pectra upgrade brings key improvements, offering hope for Ethereum's future scalability. While this upgrade can help solidify Ethereum's position, it is essential to consider existing structural issues that may impact the effectiveness of these updates.
Despite high supply metrics and issues arising from updates like Dencun, Ethereum still holds growth potential through future upgrades such as Pectra. However, continuous monitoring of demand and supply dynamics is required for a complete assessment of future trends.
