A popular crypto analyst is giving investors a reason why they should not give up on Ethereum (ETH) despite its recent struggles.
Lark Davis tells his 540,000 Twitter followers that even though ETH has seen a decrease of 23% from its 30-day high, its price should skyrocket because the token’s supply is dwindling on exchange platforms.
“There are around 3 million less #ethereum on exchanges now compared to when the price was at an all-time high. Wow! This market is a ticking time bomb!”
An asset’s exchange reserve is the number of tokens present in all wallets on centralized exchange platforms.
Davis’s remarks come on the heels of Ethereum activating its London hard fork earlier this year, which among other things, implemented a deflationary mechanism that burns ETH based on how many transactions are being processed by the network. So far, over $1 billion of ETH has been burned using this method.
According to Viewbase, Ethereum has seen nearly 170,000 tokens disappear from exchange platforms in the last seven days, with a total of 1.17 million tokens burned over a 30-day span.
Ethereum is exchanging hands at $3,012 at time of writing, according to CoinGecko.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/FOLDY