except for Ethereum’s fluctuating price trend Another important area has gained attention in the sector in recent weeks following widespread market volatility. The price of ETH is showing a bearish performance and at the same time its supply dynamics are showing a negative trend.
Net negative supply of Ethereum continues
Even in the current market weakness, supply dynamics Ethereum It suggests a quiet but powerful signal to the market. In a post on social media platform reveal Persistent negative trend.
On-chain data shows that Ethereum supply As seen in the chart Weidman shared, the net negative market continues despite continued price volatility. The data also shows that this indicator has shown a negative trend over the past 7 days.
If Ethereum’s supply dynamics remain negative, it simply means that more ETH is being removed from circulation compared to being added to the market. This pattern is the result of sustained network activity, continued fee burn, and increased long-term holding and staking demand.
Weidman highlighted that over 30,000 fresh ETH were added to the market in seven days. meanwhile, Spot Ethereum Exchange Traded Fund (ETF) Over 67,100 ETH was accumulated and around 11,700 ETH was consumed by network fees.
Overall, this results in a net supply change in the network of -49,800 ETH. Therefore, the number of ETH removed from circulation was 2.7 times the number of ETH issued on the market during the period. What this means is that the current demand for ETH continues to structurally exceed its issuance.
An increase in market demand usually precedes an increase in price. However, the price of ETH failed to react in this direction. Weidman pointed out that prices haven’t moved yet because most demand is passive and doesn’t follow prices.
Therefore, experts declare an absorption first before a breakout occurs later. Additionally, large holders remain spread out over the rally, which caps short-term moves. Another reason is: derivativesbecause they often set marginal prices rather than spot flows.
When the supply goes negative, the floor usually tightens before the ceiling lifts. Weidman emphasizes a market structure in which supply is disrupted first, followed by price, which is a clear pattern for how bases form.
ETH network throughput reaches historic high
Recent updates have brought the Ethereum network back to life quickly. Joseph Young, a cryptocurrency enthusiast, share The network’s execution throughput has reached an all-time high, marking a new milestone for ETH. Newly launched Fusaka Upgrade drives recent revitalization of network.
Since introducing the significant update, Young said: ETH mainnet capacity has doubled, and rollups like Base are already handling 10 times that number of executions. According to Young, Rollup production is expanding, while ETH is expanding rapidly, increasing the idea that ETH is the payment layer of finance.
Featured image from Freepik, chart from Tradingview.com
