Ethereum Circulation Volume Plummets

03/01/2023 12:46 • Crypto & Markets • 68 views

On March 1, according to the data of ultra-sound.money, the circulation volume of Ethereum has decreased by more than 40000 pieces for the first time since the merger. At present, it has decreased by about 40078 pieces. The current circulation of Ethereum is about 120481062.

Data: After the merger, the circulation of Ethereum has decreased by more than 40000 pieces

Interpretation of the news:

The recent data from ultra-sound.money reveals that the circulation volume of Ethereum has taken a drastic hit- marking the first time since the merger that it has seen such a significant decrease. It has dropped by more than 40000 pieces and is currently down by approximately 40078 pieces. This development is not good news for the cryptocurrency industry and has several interpretations.

The possible reasons for this unfortunate occurrence include the rise in gas prices and the increase in transaction costs. It could also be due to Ethereum’s transition to Ethereum 2.0, a new generation that focuses on Proof of Stake (PoS) instead of Proof of Work (PoW). This change has led to a migration of users from the old network to the new network, which may have influenced the decrease in circulation volume of the old Ethereum.

Furthermore, the current bearish market trend and the negative press could also have played a significant role in the downturn. Despite the surge of interest in cryptocurrencies, many countries have expressed concern over their impact on financial stability and have taken measures that limit or ban their use (most notably China).

In summary, Ethereum’s circulation volume has plummeted for the first time since the merger. While several factors could be responsible, the rise in gas prices and the increase in transaction costs stands out. The transition to Ethereum 2.0 may also have contributed to the decrease, causing a migration of users to the new network. Fear and uncertainty in the market due to the negative press and government regulations also worsen the situation. It remains to be seen how the cryptocurrency market will react in the future, but this decrease in circulation volume suggests that the industry might need to take a closer look at its practices and policies.

In conclusion, the phrase “there are no friends in crypto” holds much truth. Cryptocurrency, as an emerging technology, is susceptible to sudden changes, and any move could significantly impact a project’s success or failure. Therefore, it is essential to exercise caution and vigilance when investing in cryptocurrencies.

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Ethereum Circulation Volume Plummets

Data: After the merger, the circulation of Ethereum has decreased by more than 40000 pieces

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