The co-founder of crypto derivatives exchange BitMEX says he’s keeping a close watch on one Ethereum (ETH) chart that he believes could signal a fresh bull cycle for the king altcoin.
Arthur Hayes tells his 298,600 Twitter followers that Ethereum’s net issuance is the only chart “that matters” after the leading smart contract platform successfully transitioned to a proof-of-stake protocol.
“Show me that drop in ETH issuance every day, and I will show you a BULL F****NG MARKET!”
Issuance is the process of creating ETH tokens that previously did not exist to reward stakers who keep the Ethereum network secure and running.
In a recent post, the Ethereum community illustrated the dramatic change in the amount of ETH issuance after the merge.
“Mining rewards ~13,000 ETH/day pre-merge.
Staking rewards ~1,600 ETH/day pre-merge.
After the merge, only the ~1,600 ETH per day will remain, dropping total new ETH issuance by ~90%.
The burn: at an average gas price of at least 16 gwei, at least 1,600 ETH is burned every day, which effectively brings net ETH inflation to zero or less post-merge.”
Hayes previously said that sees Ethereum trading at $3,000 at the end of the year as he believes the amount of circulating ETH after the merge will not be able to meet the demand.
“If there’s a certain amount of demand and the supply isn’t there to meet it, the price goes up, and it doesn’t matter if the cost of dollars is 4% or two or 25%.”
At time of writing, Ethereum is trading for $1,455, flat on the day.
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